Barratt Developments claimed that it is an excellent & # 39; year after swinging to a higher profit amid the more difficult times for the housing market.
The group saw its annual profit before tax increase by 9.2 percent to £ 835.5 million, while sales grew 4.8 percent to £ 4.87 billion.
David Thomas, director of Barratt, said: & # 39; As the UK's largest home builder, we help address the housing shortage of the country – creating jobs and supporting economic growth while continuing to lead the industry in quality and customer service. & # 39;
Growth: Barratt Developments claims that it's an excellent # & # 39; year after having made a profit
Barratt said that the availability of attractive mortgage loans and the Government's scheme to buy remained robust robust demand & # 39; support in her business.
The Help to Buy plan, which gives starters the chance to get on the home ladder with a down payment of just 5 percent, provided Barratt with more than 40 percent of its sales in the past year.
Although the Help To Buy scheme initially came to an end in 2016, former Chancellor George Osborne announced in 2014 an extension of the Equity Loan scheme to help until 2020.
With help to buy systems that give many house builders a balance boost, the sector would like the government to decide whether it should be further expanded.
But on the weekend it appeared that the ministers of the government have a "fundamental revision & # 39; of the plan, allowing it to be replaced by a system that better targets those who are struggling to get their feet on the real estate ladder.
Ministers fear that Help to Buy is benefit richer households and push up house prices.
Barratt & # 39; s chief executive Mr. Thomas said: & # 39; As [ministers] wanting to continue building housing, one would assume that they would see Help to Buy as a good way to achieve that. . . it would be helpful if they could make a decision about Help to Buy as soon as possible. & # 39;
Barratt saw deliveries rise by 1.1 percent to 17,579, the highest figure in a decade, while average sales prices at completion increased by 5 percent to £ 288,900. The forward sales increased by 11.1 percent to £ 3 billion.
Mr. Thomas: & # 39; The group starts the new financial year in a good position with a strong balance sheet, healthy forward sales and a robust consumer demand supported by a positive mortgage environment. & # 39;
The stock price of the company in the early morning trading rose by 0.34 percent or 1.8p to 537.4p.
Investors saw their annual dividend increase by 5 percent to 43.8 pence per share.
Neil Wilson, market analyst at CMC Markets, said: "Barratt still trades with something from a discount to peers – about 8 times the term profit – after shares have dropped by about 20% last year.
• But with a healthy dividend that is available, there is an upside potential, although there may be softness today, as the numbers were well marked in July.
& # 39; You can view the risks of the investment thesis from different perspectives – not least a radical reconsideration of the housing strategy – but past performance of successive governments in the past 40 years does not point to a real shift that would unduly worry investors.
• However, the risk of a government-led government taking over the sector is a consideration and is reflected in the discount we see on the sector. & # 39;
But Richard Hunter, head of the markets at Interactive Investor, warned: "With interest rates showing an upward trend and the economic outlook becoming increasingly uncertain as the Brexit negotiations take hold, the sector is on the firing line.
Slow: Berkeley Group said the UK housing market & # 39; no urgency & # 39; has
In addition, rising construction costs and the possibility for every government to withdraw in its current search to reduce housing shortages in the UK are shedding a long shadow. Every weakness in house prices is confiscated and despite the protests from Barratt, these factors are widespread. & # 39;
With the same cautious approach, Berkeley Group said in a trade update prior to its Annual General Meeting today that although it makes billions of profit, the housing market is "urgent" and London is limited by high transaction costs, restrictive incomes multiple limits on mortgages lend and prevailing economic uncertainty, accentuated by Brexit. & # 39;
Despite earlier warnings for annual earnings decline, Berkeley today supported the previous claim to deliver at least £ 3.4 billion of pre-tax profit for the five years to April 20, 2021, with at least £ 1.6 billion of earnings over the period of two years until 30 April 2019.
In June, Berkeley said it sold 3,536 homes in the past fiscal year, more than 9 percent of the 3,905 sold a year earlier. Average sales prices amounted to around £ 715,000, compared to £ 675,000 a year earlier.
Looking at the London market as a whole, Berkeley noted that the total transaction volumes were 19 percent lower than two years ago.
In the period from May to August, Berkeley said that it has acquired five new sites.
The share price of Berkeley increases by 1.13 percent or from 39.5p to 3.549.5p.