In the wake of house price market fall due to Brexit, Barratt Developments can't shake that 2017 will still be a good year. Thus, the company anyway offered higher shareholder allocation. Find out here all the details regarding the housebuilder's startling choice and whether it's good or bad.
As stated by Independent, Barratt's move might not be a good thing after all. It explained that Brexit uncertainties will largely affect the housing demands. It will bring every real estate business down if they will not make preventive measures now.
"The housing market is currently balancing a raft of somewhat mixed economic news alongside the latest policy measures announced by the Bank of England," Chief Economist Simon Rubinsohn discussed on the issue. The ripple of UK leaving EU will surely hit everyone soon.
With the consumers' loss of trust in the market today, the housing will not be the best thing in the coming years. Additionally, job security and house prices will be added fears.
In a report by the Guardian, many real estate agents are tightly holding their finances now because they know that everything might turn sour anytime. Though, no one saw it coming that Barratt Development's housings will stand tall on its ground.
"Overall the housing market is very strong. We've seen a really strong start to the new calendar year, a record forward order book, and strong consumer demand," the Barratt announced. "Our confidence in the business going forward is reflected in the improved and extended capital return plan," It continued.
To take note, the company based its belief on the latest Pre-tax profit it received. It rose by 9% striking down the analyst's predictions. The housebuilder is one of the leading housing constructors in the market now.
To conclude, Barratt's thoughts on the current housing situation may have bases though it nonetheless better to make precautionary measures on these times. With Brexit's issue, anything can happen anytime.
