By Sohaib Shams
Barratt Redrow, Britain's largest housebuilder, said private home reservations have softened in recent months as affordability pressures weigh on potential buyers. Home completions also dipped in the first four months of the financial year.
Reservation rates decline
Chief executive Dean Banks said trading performance in the first 17 weeks was resilient despite challenging market conditions. The underlying private reservation rate fell to 0.53 for the 17 weeks to October 25, down from 0.57 a year earlier, while the total reservation rate edged up to 0.59 from 0.57.
Completions fall but order book grows
Home completions dropped to 3,223 from 3,665 over the same period last year. However, the group's order book grew to £3.32 billion, up from £3.28 billion a year earlier.
Government schemes welcomed
The update follows the autumn Budget, which introduced a First Time Buyer ISA and a Your First Home scheme aimed at helping people onto the property ladder. Banks welcomed the measures, saying they have the potential, alongside planning reform, to support increased housing delivery over time.
Chris Beauchamp, chief market analyst at IG, said traders are focusing on the improvement in Barratt's order book, which is sufficient to offset recent negative performance.
