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Barratt says housing sector is improving after strong results
THE UK's biggest housebuilder says it has been galvanised by the improving property market after posting strong results.
Barratt, founded by North-East property tycoon, Sir Lawrie Barratt, says its decision to target cheap land during the recession, coupled with the Government's Help to Buy scheme, has increased revenues and profits.
The firm's annual results show group revenues stood at £2.6bn for the year to June 30, with pre-tax profits rising to £104.8m from £100m, and Barratt says it expects to build about 45,000 new houses in the next three years.
Bosses said the average selling price had also increased from £180,500 to £194,800, and the group has cut debts to £25.9m from £167.7m, with a 30 per cent increase in private reservations and private forward sales up 44 per cent to £880.4m.
The results come with the revived housing market at its strongest level for five years, with Help to Buy allowing people to buy a property with a five per cent deposit.
Mark Clare, group chief executive, said: “These are significantly improved results and we have had a very strong start to the new financial year.
“We are seeing the housing market recovery starting to spread beyond London and the South-East with the 29.4 per cent increase in average net private reservation rates.
“Our £2.6bn commitment to land investment since 2009 puts us in a good position to capitalise on these market trends and we have already increased our completion volumes by over 20 per cent in the past two years and expect to deliver around 45,000 new homes over the next three years.”
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