CONFIDENCE

Housebuilders Barratt Developments and Crest Nicholson have become the latest industry heavyweights to shrug off property market fears as they insisted yesterday that buyer demand remains solid.

Releasing trading updates, the firms said the “wide availability” of mortgage finance was helping support the newbuild market, despite Brexit uncertainty and the squeeze on household finances.

Their upbeat outlooks follow a similarly optimistic sounding from rival Bovis on Tuesday as the latest clutch of updates from the sector appear to cast aside recent gloom in the housing market.

Shares in the sector were sent lower last week after Persimmon and Redrow sparked fears of a slowdown, following a survey from the Royal Institution of Chartered Surveyors showing house sale levels were flat or falling across large swathes of the UK.

Barratt, which ranks as the UK’S largest housebuilder by volumes, said it had seen a “strong start” to its financial year, having held its sales rate

0 There had been concerns of a slowdown in the wake of updates last week

STEPHEN STONE, CREST firm at 0.74 reservations per development per week, or 268 reservations on average a week, with forward sales up 8.4 per cent at £2.9 billion.

It told investors: “Market conditions remain good, and the group has delivered a strong performance since the start of the financial year, with customer demand for new homes supported by wide availability of attractive mortgage finance.”

Chief executive David Thomas said the group remains “confident in delivering a good performance” over the full year, although it expects “modest” growth in whollyowned completions.

George Salmon, equity analyst at Hargreaves Lansdown, said: “The UK’S chronic housing shortage means demand continues to outstrip supply, while the government’s Help to Buy schemes and the widespread availability of attractive mortgage rates are helping affordability. All the while, prices continue to rise.

“This mix has proven a tasty cocktail for the UK’S big housebuilders,

“Thenewbuildhousing market continues to be robust and Crest Nicholson remains well positioned to grow volumes”