Skip to content

Short of the Week: Barratt Developments facing tough trading environment in 2024


Barratt Developments [LON:BDEV], one of the UK’s largest housebuilders, has released an AGM trading update for the period from 1 July to 8 October. The company said that the trading environment remains difficult, with forward sales significantly down on last year at 9,221 homes (2022: 13,314 homes).

Barratt continues to target total home completions of 13,250 to 14,250 in FY24. Shares are down 7.41% over the 30 day time horizon and facing a strategic resistance level established over the summer at around the 413p point. If buyers don't choose to enter the stock soon, then there is a good case for the stock to drop to around the 340p mark.

UK house building sector in a parlous state

The UK house building sector remains in a parlous state with significant macroeconomic headwinds coming from inflation, which is holding rock steady, and high interest rates. It is punishing the first time buyer market, and this is feeding into the fortunes of house builders. Barratt is seen as something of flag bearer for UK house building by the investor community.

Want the full story? Access all of The Armchair Trader's content for just £5.99 per month.

Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.

Free 28 day trial. Cancel anytime.

Log In or Sign Up to Armchair Trader+

Already a member? Log in here:

Not a member yet? Sign up for your free trial or check out the benefits of membership.

Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.

Like this article? Sign up to our free newsletter.

This article does not constitute investment advice. Do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

FP Markets
CME Group
Back To Top