9:02am Thursday 9th September 2010
THE UK’s largest volume housebuilder has warned a lack of mortgage finance available to would-be buyers continues to threaten the industry.
Barratt, which was founded in Newcastle, said that while conditions in the housing market have steadily improved over the past year, the number of buyers and sellers was still “extremely low” by historical standards.
The warning came as the firm posted a loss before tax and exceptional items of £33m for the year to June, a significant improvement on last year’s losses of £144.1m.
Further evidence of the improvement in the market was that, if the second half of the year was taken on its own, the group would have made a profit before tax and exceptional items of £15.5m.
Chief executive Mark Clare said: “During the year we have seen a very significant improvement in the performance of the business.”
The company, which trades as Barratt and David Wilson Homes, said it benefited from a 10.9 per cent rise in its average selling price to £174,300 over the financial year, primarily due to a move away from flats to houses.
But chairman Bob Lawson said economic uncertainty may influence the company’s future.
He said: “The key restriction on the industry remains the availability of mortgage finance.
“While there was some improvement during the year, the lack of availability of suitable higher loan-to-value products continued to restrict the new-build sector where customer deposits have traditionally been lower.”
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