Barratt and Redrow upbeat on all but mortgage finance
Two of the UK’s best known house builders have reported signs of improvement in the property market.
Barratt Developments experienced an 11.9% rise in visitor numbers during the six months to the end of June (compared to the previous six months) and private sales reservations rose an encouraging 18.6%, on a weekly basis.
Meanwhile, Redrow achieved a 22% rise in private home sales during the first half of the year.
However, the shortage of mortgage finance remains a major obstacle and both companies are finding that valuations for mortgage purposes can be so cautious that sales are being lost.
Barratt and Redrow have also published figures for the year to the end of June, with Newcastle-based Barratt recording 13,202 completions during the twelve month period, compared with 18,588 a year earlier.
The firm’s average property selling price fell 14%, to £157,000.
Redrow completed 2,113 new home sales during the period, a 46% plunge on the same period of 2007/08, and its average selling prices declined 12% to £137,500.