Housebuilder takes prudent line as it predicts that interest rates rises will cause housing market to tighten
Barratt has warned that the housing market is set to tighten in a trading update following recent interest rate rises.
Barratt chief executive Mark Clare
In its first trading update since its acquisition of Wilson Bowden, Barratt said: 鈥淕oing forward it would be prudent to assume that the cumulative effect of interest rate rises will cause the housing market to tighten.鈥�
The comments follow a weak trading statement issued by Bovis Homes on Monday, adding to fears surrounding the housing market.
However, Barratt said its group forward sales were up 15% from June 2006, to 拢1.4bn, and it was confident it could 鈥渃ompete effectively.鈥� The company said Barratt Homes forward sales at 1 July were up 20% at 拢1.1bn, with David Wilson Homes forward sales were up 4% at 拢404m.
