Barratt homes says new UK housing market in slowdown

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Nationaltradesmen.co.uk has been reporting in the recent days of the slowdown in construction being caused by the energy crisis the latest to news to confirm this is results from Barratt homes that the number of reserved new homes has fallen.

Th latest set of results from Barratts Homes on Wednesday confirmed that received buyers have fallen below pre pandemic levels

With chief executive David Thomas saying that house price growth would be moderate at best: “We recognise that significant macroeconomic uncertainties remain, most notably around inflation, energy costs and interest rates, and their impacts on UK economic growth, employment, and consumer confidence and spending,”

Barratt homes £5.3 Billion revenues do not account for its drop in revenues of 21% to £264 million because of its buildings caught up in the safety crisis, although it has pledged to give its workers a cost of living bonus of £1,000 each.

This loss in confidence comes with the Halifax warning that house prices were cooling in the current market and all the trends seem to be pointing in a downward trajectory in the near future.

The main reasons for these falls were due to infationaray pressures with Kim Kinnaird commenting that: “The slight fall seen in average house prices in July was offset by a return to growth during August – although the increase was relatively modest compared to the rapid inflation we’ve witnessed in recent times.

“Over the past year the rate of monthly house price inflation has averaged around 0.9%.

“While house prices have so far proved to be resilient in the face of growing economic uncertainty, industry surveys point towards cooling expectations across the majority of UK regions, as buyer demand eases, and other forward-looking indicators also imply a likely slowdown in market activity.

As reported by nationaltradesmen.co.uk only yesterday 8/9/22 the buyers report S&P Global/CIPS construction purchasing managers’ index (PMI) just yesterday activity is all shrinking in these areas due to firms not needing as many materials and homeowners renovations being put on hold for the full report use this link.