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.
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