Divi back at record-breaking Barratt

Barratt Developments has vowed to bring back the dividend as soon as next month after raking in record sales off the back of the stamp duty holiday.

In a major boost to cash-starved savers, the FtSE 100 housebuilder said it would bring back the payout following an ‘excellent’ second half of 2020.

During the period, agreed sales jumped to a record 13,588 homes – 14.3pc higher than the previous year.

Separate figures showed that house prices in December rose by 6pc compared to a year ago, taking the average to a record £253,374. Mortgage lender Halifax said the rise was ‘a result of pent-up demand, a desire among buyers for greater space and the time-limited incentive of the stamp duty holiday’. Barratt’s announcement sent the firm’s shares up 4.5pc, or 31p, to 720p – their highest level since last March.

Chief executive David thomas said: ‘Despite the ongoing challenges presented by the pandemic, we are confident that our performance and strong financial position provide us with the resilience and flexibility to respond to the operating environment in 2021 and beyond.’

Like other UK builders, Barratt suspended the dividend to conserve cash last spring as the first national lockdown hammered the economy and imperilled jobs.

In a particularly brutal run from February 1 to March 19, the company’s shares halved in value. Builders were further plunged into chaos from late March to mid-May as the housing market remained shut and many temporarily suspended construction work.

But their shares have rallied since then as the market has been boosted by huge government economic stimulus packages – including the furlough jobs scheme – and a stamp duty holiday on housing sales worth less than £500,000.

the builder was boosted in the six months to December 31 by ‘very strong demand’ for homes after the first national lockdown, as families who had been stuck indoors for months looked for more spacious properties.

But Barratt warned that since October the pace of sales had slowed. this was underlined by Halifax, which said house price growth from November to December was 0.2pc, suggesting ‘the party is winding down’.