Barratt's latest warning
Barratt Developments, Britain's second largest house builder warned on profits today after reservations for its new homes fell by half and an increasing number of buyers pull out of purchases. It became the latest large builder to put the freeze on expansion.
The value of Barratt's book of forward orders, which includes reservations and exchanges on house purchases, today stands at £1.56 billion, a 26 per cent decline on the £2.1 billion booked this time last year.
Delivering a third quarter trading update today Barratt, headed by Mark Clare, said: "Since the end of March market conditions have deteriorated significantly as a result of an unprecedented reduction in mortgage availability and tightening lending criteria, combined with a decline consumer confidence."
Mr Clare said 'We do not expect to see a meaningful upturn in the housing market until there are improvements in the availability of mortgage finance."
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