UK’s Barratt expects 2021 profit above market estimates, robust demand ahead

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A Barratt homes sign is seen at a Barratt housing development near Haywards Heath, Britain, February 20, 2020. REUTERS/Peter Nicholls/File Photo

July 14 (Reuters) – Barratt Developments Plc (BDEV.L) on Wednesday forecast 2021 profit to be marginally above the top end of market expectations and said it sees strong demand ahead, even as UK’s housing market shows signs of cooling following a recent price boom.

After a tax break invigorated the housing sector, continual availability of cheap loans and a pandemic-led preference among buyers for larger houses suited to remote working have helped homebuilders forecast higher medium-term returns.

House prices have risen in recent months as customers rushed to buy homes before tax breaks began to taper from June-end. But, data from RICS (Royal Institution of Chartered Surveyors) last week showed fewer homes were put up for sale and demand grew less quickly, ahead of the end of the tax break in September. read…

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