Barratt set to cut back on site numbers

BARRATT Developments yesterday predicted that the number of sites the company operates will decline as it responds to a “significant” deterioration in market conditions.

It said only a few new projects were starting where there was clear visibility of demand and work-in-progress could be tightly controlled.

In a trading update, Barratt said its forward order book currently stood at around £1.56 billion, compared with £2.1bn a year earlier. The company said it was finding greater pricing pressure across the UK and that sales incentives were being required to stimulate demand.

Barratt added: “Current market conditions are impacting to varying degrees on regional performance, with the Midlands and west worst affected, whilst the London and south-east markets are relatively more resilient.

“The group continues to benefit from a broad geographic and product mix and a targeted exposure to the London market.”

Barratt briefly became the UK’s biggest housebuilder following last year’s £2.2bn acquisition of Wilson Bowden, but dropped out of the FTSE 100 index in December.