Housebuilder says overall market conditions are healthy and Brexit vote has not hit demand for new homes. One of Britain’s biggest housebuilders has started cutting prices on some of its most expensive London homes because of waning demand at the top end of the market.
Barratt Developments said that although overall market conditions were healthy, it was proving more difficult to sell homes priced above £1m in the capital because of too much supply.
David Thomas, the Barratt chief executive, said: “Market conditions in London at higher selling prices remain more challenging. To mitigate these risks we have taken pricing action on a number of our sites in London.”
Barratt has 385 sites in the UK, about 20 of which are in London, with six or seven classed as higher-end in the capital. Thomas said the company was lowering prices by about 5% to 10% on a few of its most expensive, centrally located London sites in zones one and two.
He said that in another move to “de-risk” its London portfolio, Barratt had exchanged on a “build and sale” agreement, selling a whole development of 39 apartments for £47m. Under such an arrangement, a housebuilder would sell at a reduced price, but avoid the cost and uncertainty of running show homes and offices from the new development.