Barratt Homes prospering despite struggling housing market
Developer takes advantage of government schemes to make huge profits
September 12, 2012
The government’s ‘FirstBuy’ scheme is propping up house sales at Barratt Developments, supporting 12% of the properties the house-builder sold over the last 12 months. The house builder claims that its profits have increased by 159% compared to last year and now stand at £111 million.
The company revealed today 1,573 homes were sold under ‘ First Buy’, that offers a Government backed share equity deal. Mark Clare, Group Chief Executive, said share equity remained an important selling tool for the company in the light of the continuing squeeze on mortgage lending. He also indicated that the newest government scheme to help homebuyers, NewBuy, has prompted ‘promising’ customer interest. But he said it would not be possible to assess it full potential until the autumn selling season. NewBuy was launched in March 2012.