Barratt Developments praises resilience as sales fall in ‘challenging’ market

A Tyneside-founded housebuilder has hailed a “strong performance in a challenging environment” after a sales dip knocked profits.

Barratt Developments saw adjusted pre-tax profit fall 16.2 per cent to £884.3 million in the year to June 30 after annual sales fell four per cent to 17,206.

Bosses blamed the “cost of living crisis, mortgage affordability…and an ineffective planning system” for the slump, and admitted “the backdrop will continue to be difficult over the coming months”, with forward sales lagging behind.

However, bosses at the company – founded in the 1950s when accountant Sir Lawrie Barratt built his own four-bedroom home in Newcastle – say it remains resilient and committed to driving “long-term sustainable growth.”

David Thomas, chief executive, said: “These results reflect the hard work and dedication of our teams, and the decisive actions we have taken to respond to market conditions.

“We remain committed to building the communities customers want – delivering high-quality, sustainable homes at competitive prices to help address the country’s housing crisis.”

Carl Sobolewski, managing director at Barratt Developments North East, added: “Our customers remain at the heart of our operations, and despite the challenging environment of the cost of living crisis and mortgage affordability, we’re proud to have delivered a strong operational performance for another year.”