UK house builder Barratt said it expected annual results to be in line with expectations but warned that private reservations had slipped as customers reacted to rising interest rates and reduced mortgage availability.
“The outlook for the year is less certain with the availability and pricing of mortgages critical to the long-term health of the UK housing market,” Barratt said on Wednesday. Adjusted full-year pre-tax profits are expected to come in at £972.5m.
Interest rates have been rising as central banks fight surging inflation amid a cost of living crisis. Britain has also been hit by the government’s ill-received recent mini-budget which introduced a swathe of unfunded tax cuts, sending markets into freefall and forcing mortgage providers to pull many loan deals.
Barratt said net weekly private reservations fell to an average 188 from 281 in the July 1 – October 9 period.
“Based on our completions to date, our strong forward order book and current market conditions, we now expect wholly owned completions to be in line with those reported in FY22,” the company added.
Reporting by Frank Prenesti for Sharecast.com
