Barratt Developments trading update

Barratt Developments has forward sold all its properties in FY23, demonstrating impressive resilience and adaptability in the face of unprecedented challenges presented by the economy. This success shows that the private sector has an essential role to play in meeting the UK's housing needs. With demand far outstripping supply, the UK's housing market is under significant pressure. While the government has committed to building more homes, it will take time for these plans to come to fruition. Meanwhile, companies that invest in and innovate their products are well-placed to deliver the quality homes that people are looking for to help address the chronic shortage of affordable housing in the UK. It is vital to support and encourage the private sector to invest in the UK's housing market. By doing so, the government can ensure that annual housing targets for safe, high-quality homes are meeting the expectations of the voters that they rely on at the next election.

The Barratt numbers and upbeat tone are encouraging overall and show that UK property hunters have spent too long waiting to implement their long-term plans and are now out to buy their new homes, having factored in the increased level of mortgage rates.

This all points to a pretty stable state of affairs. It's unsurprising really when we have a national shortage of houses and don't build enough to keep up with demand that those that do get built get sold. The doom-mongers pointing to a housing market crash shouldn't ever forget the inflationary pressure that under-supply of homes for people to live in causes.

The property market seems to be a lot more positive compared to late last year. We have a lot of clients offering on properties as mortgage rates have stabilised and they feel confident that there isn't going to be a reduction in house prices.