Improving mortgage availability boosts Barrett Homes profits

Posted on February 24th 2016

by Stephen Nicolson

Last September, Barratt Homes reported that its profits were up 45 per cent due to improving mortgage availability and government assistance.

The company said that the demand for new builds across Britain remains strong – no more so than in the north of Scotland.

The Ness Castle development offers a suburban feel, just four miles from the scenic and historic shores of Loch Ness where two, three and four bedroom homes are on offer.

From Barratt Homes’ Caledonia range, the properties are said to provide easy access to the city but also a peaceful retreat in which to relax and enjoy an area rich in folklore.

Potential buyers are enticed too with a promise of convenient living with educational establishments, amenities and transport links all nearby according to the organisation.

Barratt Homes vow that the homes are ‘designed with you in mind’ and that their builds present you with a mix of open-plan, modern living as well as a traditional approach with a broad ranging choice of bathrooms and kitchens to whet the appetite.

Other North developments from Barratt Homes include Elgin’s The Grange and Inverurie’s Harlaw Gait, both accompanied by similar assurances to the Ness Castle proposals.

With such projects being made possible thanks to the governments Help to Buy scheme, house prices were understood to risen by 8.7 per cent and Barratt’s chief executive, David Thomas, told of his optimism.

“The new financial year has started very well; we have a strong forward sales position,” said the housing boss.

16,447 new homes were built by Barratt or via joint ventures since September 2014 and had committed £957m for nearly 17,000 more houses.

Chairman John Allan shared the positive outlook of CEO, Mr Thomas and hailed an “excellent” financial performance.

However, while acknowledging Barratt’s achievements, Richard Hunter of Hargreaves Lansdown – a Bristol based financial services firm – warned of potential growth on the housing and mortgage markets.

He said: “Housebuilders find themselves in an extremely sweet spot at present and Barratt is no exception. A combination of low interest rates, a general lack of new housing supply, rising house prices and increased mortgage availability all play into its hands”

He added, however that housing and mortgage market growth could be caused by a raise in interest rates.

The Ness Castle development enjoyed an outstanding start with its first two releases selling out in as many weeks, forcing Barratt Homes in to an early release of the final phase one properties, in June 2015.