Barratt to reveal record £1bn profits

BARRATT Developments is forecast to post a profit of more than £1 billion for the first time after the property market soared in 2021.

But Britain’s biggest homebuilder will also reveal its plans to counter the worst cost of living crisis in generations.

HSBC analysts warned on Friday that there could be a major housing downturn as a steep climb in mortgage rates casts a cloud over demand.

Property prices began soaring after the first Covid lockdowns, helping FTSE100-listed Barratt and its peers stave off rising costs from supply chain disruptions and worker shortages.

In its full-year results on Wednesday, Barratt will report profits of almost £1.1billion, according to analysts’ estimates.

But Matt Britzman, equity analyst at Hargreaves Lansdown, said the firm faces challenges from rising costs. He added: ‘Higher mortgage costs and a slump in consumer confidence could begin to slow the demand for housing.’

It will be one of several updates from major housebuilders this week.

Berkeley will release a trading statement on Tuesday, while Vistry will publish its half-year figures on Thursday.