Both Taylor Wimpey and Barratt Developments have released interim trading updates this week and agree sales have been strong since the uncertainty that followed the Brexit decision back in June.
Peter Redfern, CEO of TW said in a conference call to investors, “trading during the second half of 2016 and into the autumn selling season has been strong, with good levels of customer confidence and demand”. His comments corresponded with those of David Thomas, CEO of Barratt Group, who sited, “this has been another good trading period for the Group. Consumer demand is strong supported by good mortgage availability.”
Both are conscious of the uncertainty that lay ahead, however, with Thomas stating, ‘we are mindful of the potential for economic uncertainty created by the outcome of the EU Referendum.’
That being said, stats remain positive for both the nationwide house builders with cancellation rates low and sales rates high. Barratt are expecting a record year for 2017 as, ‘the land market remains attractive and we are securing operational land opportunities that at least meet our minimum hurdle rates of 20% gross margin and 25% ROCE.’