Housebuilder says materials and labour shortages are easing, in strong half-year results
Materials and labour shortages in the housing market are 鈥榚asing鈥�, housebuilder Barratt has said in strong half-year results.
Barratt said materials shortages, particularly of bricks and blocks, had eased and would only have a 鈥渓imited effect鈥� on the firm鈥檚 costs and supplies, while labour shortages, particularly of bricklayers, had also 鈥渕oderated鈥� in recent months due to labour returning to the industry and better production management.
Nonetheless, build cost inflation is expected to remain at 鈥渓ow single digits鈥�, expected to be 3-4% this year, Barratt said.
In half-year results for the six months to December 2014, Barratt posted record completions of 6,971, up from 6.195 the previous year.
Pre-tax profit jumped 75% to 拢210.2m, up from 拢120.4m, while revenue grew 25% to 拢1.6bn, up from 拢1.3bn.
Mark Clare, chief executive of Barratt, said: 鈥淪ince 2009 we have committed to invest over 拢4 billion in land for new housing and this is now paying off.鈥�
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