Housebuilder Barratt Developments saw a drop in sales in the three months to 8 October 2023, attributing this to a slower reservation rate amid mortgage hurdles faced by potential homebuyers.

The firm’s forward sales — including JVs — for the period totalled 9,221 homes, a nosedive from the 13,314 homes reported in the year to October 2022.

The value of the homes equated to £2.36bn, in comparison with the £3.6bn seen in the period a year prior. The absence of Help to Buy reservation activity — which accounted for 12% of private reservations in the previous year period — also contributed to the downswing in sales. 

Looking to the future, Barratt Developments stated that the outlook for the year remained uncertain, with the availability and pricing of mortgages critical to the long-term health of the UK housing market.

David Thomas, CEO at Barratt Developments, commented: “The trading environment remains difficult, with potential homebuyers still facing mortgage challenges. Against this backdrop, we are focused on driving revenue while continuing to manage build activity and carefully control our cost base. As always, we remain focused on leading the industry in building high-quality, energy-efficient and sustainable homes for our customers.”