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Barratt Share Price Surges 6% on Optimistic Outlook

Updated: 06 July 2020

Shares of Barratt Developments PLC (LON: BDEV) are trading more than 6% higher today after the firm said it has opened a new fiscal 2021 year with optimism. 

The homebuilder reported that it completed 12,604 homes for the period ended March 22. This is 32.4% lower than 17,856 homes built in the same period a year ago. 

Still, Barratt is optimistic that the upcoming period will help to offset losses recorded in the last quarter. As of June 30, the order book stands at 3.25 billion pounds ($4.06 billion), compared to 2.60 billion pounds a year ago. 

“Since the removal of government restrictions on housing market activity on 13 May 2020 there has been a welcome recovery in internet activity, site visitors and net reservations across both the industry and our business,” Barratt said.

The firm has witnessed a surge in the demand from first-time buyers for the government’s help to buy homes. 

The homebuilder received another boost after this morning’s reports that the UK government is considering to exempt most homebuyers from paying any stamp duty.

Barratt share price surges higher on the optimistic outlook July 2020

Barratt share price surged to 523p, which is over 6% higher compared to Friday’s close. Shares of the company could go to 537p where the next horizontal resistance is located.