Business | Property

Barratt home sales boosted by stamp duty holiday and pent-up demand from lockdown

Barratt Developments is one of the UK’s biggest housebuilders
Barratt Developments
Joanna Hodgson
8 January 2021

Barratt Developments, the FTSE 100 builder, sold over 9000 homes in the first half as buyer numbers  soared following the first lockdown.

The company, led by David Thomas, said in the six months to December 31 it “saw an increased sales rate as strong underlying demand was supplemented by pent-up demand from the initial national lockdown, the introduction of the stamp duty holiday and the March 2021 end of Help to Buy for existing home owners.”.

During the period it completed sales on 9077 homes compared to 8314 a year earlier.

Estate agents have reported that  many people reassessed their housing needs during the first Covid-19 lockdown that started in March 2020, with some wanting more space for home offices, and a garden, or larger garden.

The housing market was effectively shut down at the start of the lockdown as people were urged to avoid moving, viewings stopped and a number of construction sites temporarily closed.

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Estate agents experience bumper demand for homes

Estate agents experience bumper demand for homes

Relief as housing market to stay open ahead of stamp duty deadline

Relief as housing market to stay open ahead of stamp duty deadline

But restrictions for the sector were eased in May, and in a move to boost the market, Chancellor Rishi Sunak in July announced a suspension of stamp duty on property sales of up to £500,000 until March 2021.

The housing market is allowed to operate during the latest national lockdown.

Barratt said that as December 31, forward sales, which includes sales via joint ventures, had increased 14.3% to 13,588 homes at a value of £3.2 billion.

For the full-year to June 30  Barratt expects wholly owned  sales (excluding from joint ventures),  to be between 15,250 and 15,750 homes. The prior year it sold 12,034.

It expects to agree the resumption of dividends with the interim results on February 4.

The firm said the business continues to be in a strong position with substantial net cash and a well-capitalised balance sheet.

But it added: “Nevertheless, we are mindful of the continued economic uncertainties arising from Covid-19 and the UK's new trading arrangement with the EU, together with the end of the stamp duty holiday and the changes to Help to Buy.”

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