Why there is room for optimism about the housing market – even if first-time buyers are being squeezed

Barratt Developments have suggested there are ‘early signs of improvement’. However, Britain suffers from a shortage of housing and it needs developers to build even if the market isn’t favourable, argues James Moore

Housebuilder Barratt Developments has revealed early signs of a recovery in homebuyer demand but said reservations remain under pressure (PA Wire)

Britain’s largest housebuilder, Barratt Developments, has suggested there are signs of fairer winds ahead for the UK housing market – after an increase in sales in January

CEO David Thomas said, in his opening comments atop the group’s half-year results, that he had seen “early signs of improvement” in the market, with the company having been dealing with some decidedly heavy weather of late.

Despite a tough operating environment, the company produced what looks like a fair set of results. Pre-tax profits showed a handy increase of 16 per cent, to £501.5m. Revenues grew by 24 per cent, the number of completions by 7 per cent.