Housebuilder Barratt Developments is upping the stakes in London with more than 3000 homes under way in the capital’s buoyant housing market, the firm said today.
The 21 sites are spread across 15 boroughs, including two next to the Olympic park, where flats are selling like hot cakes, according to chief executive Mark Clare. It is set to reveal a major development in west London shortly.
Clare said: “The reality is that there is a lot more demand in London even with the constraints on building supply. That’s where the sweet spot is.” Barratt, once in danger of collapsing after an ill-timed acquisition at the top of the market in 2007, has settled on the formula of flats in the capital and family homes outside London. This pushed up average selling prices 1.6% to £202,000.
Despite a sluggish overall market, the firm flagged up pre-tax profits of £110 million for the year to June, more than double last year and ahead of City hopes. Barratt has nearly halved its debt in the past year, at £170 million.
Northland Capital analyst Simon Brown said: “Driven in part by a greater exposure to London, Barratt is making solid progress in reshaping and re-energising its business to accelerate earnings recovery with little help from overall housing activity.”
