Barratt Developments forecasts profit of more than £1bn for the first time after property market rocketed in 2021
Barratt Developments is expected to report a profit of more than £1 billion for the first time since the property market surged in 2021.
But Britain’s biggest homebuilder is also set to unveil its plans to counter the worst cost-of-living crisis in generations.
Analysts at HSBC on Friday warned there could be a major downturn in home construction as a steep rise in mortgage rates would weigh on demand.
Forecast: In its full-year results, analysts estimate that Barratt will report a profit of almost £1.1 billion
Property prices began to soar after the first Covid lockdowns, helping FTSE100-listed Barratt and its peers fend off rising costs from supply chain disruptions and labor shortages.
In its full-year results on Wednesday, Barratt will report a profit of almost £1.1 billion, according to analyst estimates.
But Matt Britzman, an equity analyst at Hargreaves Lansdown, said the company faces challenges from rising costs. He added: “Higher mortgage costs and a slump in consumer confidence could slow demand for housing.”
It will be one of several updates from major home builders this week.
Berkeley will release a trade statement on Tuesday, while Vistry will release its half-year results on Thursday
