Mortgage challenges lead to a drop in reservations for housebuilder Barratt

A challenging mortgage market has led to a decline in reservations for housebuilder Barratt, although the firm continues to trade in line with its own expectations, the company told investors today (Wednesday).

The firm said new home reservations were averaging 169 a week – 10 per cent lower than the 188 a week of a year ago.

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Looking ahead, the housebuilder said the outlook remained uncertain due to the pricing of mortgages which it said was critical to the long-term health of the UK housing market.

It said it continued to expect to deliver between 13,250 and 14,250 homes in the 2024 financial year, down at least 17 per cent from 17,206 in 2023.

Chief executive David Thomas said: "“We have continued to trade in line with the expectations set out in our announcement in September.

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"The trading environment remains difficult, with potential homebuyers still facing mortgage challenges. Against this backdrop, we are focused on driving revenue whilst continuing to manage build activity and carefully control our cost base.

"As always, we remain focused on leading the industry in building high quality, energy efficient and sustainable homes for our customers.”