Barratt profits tumble amid housing slumpas soaring mortgage rates continue to batter demand
Britains largest housebuilder posted a slump in profits as soaring interest rates continue to batter demand.
Barratt Developments said profits tumbled 16.2 per cent to 884.3million in the 12 months to the end of June, having topped 1billion the previous year.
The number of homes built and sold fell by 702 to 17,206.
Like rivals, Barratt has fallen victim to the 14 consecutive interest rate rises that have hit demand as mortgage rates soar.
Rates have risen from 0.1per cent to 5.25per cent since December 2021 spelling misery for borrowers with a further hike expected this month.
However Bank of England Governor Andrew Bailey yesterday said rates are much nearer their peak.
While Barratt has been hit by rising borrowing costs, it has also seen the cost of doing business soar due to inflation.