Barratt loss on house market woes

Cannon_Fodder

http://newsvote.bbc.co.uk/1/hi/business/7909459.stm


UK housebuilder Barratt Developments has reported a loss of almost £600m in the second half of 2008 after having to write down the value of land it owns. It reported a pre-tax loss of £592.4m from a £192.4m profit a year earlier.

The bulk of Barratt's losses came from a £494.9m impairment charge on the value of its land bank - because of falling property values and shrinking demand for homes.


http://www.barratt-investor-relations.co.uk/ir/results/presentations/Preliminary_Results_30-06-07.pdf

http://www.barratt-investor-relations.co.uk/ir/reports/reports/annual_report_2008.pdf

http://www.barratt-investor-relations.co.uk/ir/results/presentations/Interim_Results_31-12-08.pdf


From a landbank of £2.56bn in June, they now have a landbank of £2.07bn...

What effect does this have on future land prices?
Knock-on effect to future house prices?

Really2

Cannon_Fodder wrote: »

What effect does this have on future land prices?
Knock-on effect to future house prices?

They have priced the land to current market/future valuation.

It will enable them to sell homes cheaper than before as the land cost is reduced.

chucky

the share price went up with this news - i think they're listening to Really regarding the future valuations
http://uk.finance.yahoo.com/q?s=BDEV.L

ad44downey

Cannon_Fodder wrote: »

What effect does this have on future land prices?
Knock-on effect to future house prices?

If Barrat's cut their prices to a sensible level I'm sure they'd be able to sell their houses. They need to stop whining and cut their prices.

wymondham

They had it VERY good for years, now comes reality for them...

Cat695

ad44downey wrote: »

If Barrat's cut their prices to a sensible level I'm sure they'd be able to sell their houses. They need to stop whining and cut their prices.

It seems so simple to us doesn't it but why o why doesn't it to them??

spuds_2

They have milked the market for ten years, they should have made provision for a downturn. They did plenty of land-banking instead of building affordable homes. No sympathy here, I'm afraid.

joolsybools

Here here, well sais spuds, it's the same as all the other companies out there that are now screaming for handouts they should have made provision (not that Barratts are asking for handouts but it wouldn't surprise me!)

A bit like the numpties that charge VAT then spend it then panic coz the VAT bill's due. Derrr! It's not like you couldn't see the VAT bill coming!

bo_drinker

So they don't offer this then ??

http://www.youtube.com/watch?v=BcshqGxiYMU

Pssst

Well they can just sell new houses to HAs for chavs to live in ,,just like Bellway are doing.

My heart bleeds for the major housebuilders.

They have been throwing up cardboard houses for years and charging fortunes for them.
Also flatpacking the whole country with their crummy,over priced,badly constructed "apartments" or flats if your a tenant.

IMHO houses should be system manufactured in factories and assembled on site. None of this concrete and gluing bricks together malarky. this would ensure a higher quality,mass produced ,cheaper product. Good quality housing for a larger proportion of people.

elaina79

I live opposite a barrats building site that has seen little activity for the past 6 months, but there was a lot of people in suits having their pictures taken and drinking champagne on tuesday. They clearly have something to celebrate.