Barratt Homes highlights increased post referendum economic uncertainty in trading update

Leading house builder Barratt Homes have said they have taken “appropriate measures” to reduce risk following the vote for Brexit.

The company’s value has dropped sharply since the vote, with their share price down 24.4% on where it was a month ago however the company believes that despite the general uncertainty, they are in a good position due to the under supply of homes and availability of mortgages.

Barratt say their total completions are up 5.3% for the tax year ending in April, at 17,319 with prices up 10.6%.

The company’s outlook statement read: “Following the EU referendum, we are mindful of the greater uncertainty now facing the UK economy. Consequently, the immediate outlook for our industry is less clear and it is too early to draw any conclusions regarding market conditions from the short trading period since the referendum. We had contingency plans in place and we have taken appropriate measures to reduce our risk, such as reassessing land approvals, as we continue to monitor the market.”

Chief Executive David Thomas said: “We have delivered another strong performance for the year. The disciplined growth in completion volumes reflects the strength of our sector leading build and sales teams.

“Following the EU referendum, it is too early to say what the impact of the uncertainty facing the UK economy will be. The sector continues to receive focused government support, mortgage availability is good and there remains an under supply of new homes. With a strong balance sheet and forward order book, and industry leading quality and customer service, we remain confident in the positive fundamentals of both the housing sector and our business.”

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