Trading Update
We have delivered an excellent first half performance. Across the country, we have seen strong customer demand for our high quality new homes. Our sales rate over the period has, as anticipated, moderated since our October update to a more normalised level and for the period was up 11.6% at 0.771 (2019: 0.692) net private reservations per active outlet per week.
During the first half we saw an increased sales rate as strong underlying demand was supplemented by pent-up demand from the initial national lockdown, the introduction of the stamp duty holiday and the March 2021 end of Help to Buy for existing home owners. While we entered FY21 with elevated levels of work in progress and rapidly improved our site-based construction activity in the first quarter, the very strong demand experienced in the half year absorbed both of these, and has reduced our product availability for the third quarter of FY21.
In the half year, we operated from an average of 342 (2019: 372) active outlets (including 8 JVs (2019: 9)), a reduction of 8.1% reflecting the delay to site starts created by the initial national lockdown period. We have had a successful first half, launching 63 (2019: 45) new outlets (including JVs), above our expectations, which we expect to sustain the ongoing recovery in our completion volumes in FY21 and beyond.
In the period we delivered 9,077 (2019: 8,314) home completions (including JVs of 378 (2019: 314)), up 9.2% on last year. This growth benefited from both the elevated level of work in progress carried into the new financial year and our higher opening forward sales position, due to the initial national lockdown delaying completions. Our total average selling price ('ASP') increased by 1.1% to c. £283k (2019: £279.8k), with private ASP up 2.2% to c. £319k (2019: £312.0k), reflecting both a positive mix impact and underlying house price inflation.
Total forward sales (including JVs) as at 31 December 2020 have increased by 14.3% to 13,588 homes (2019: 11,885 homes) at a value of £3,212.1m (2019: £2,691.0m), 19.4% up on last year. We are now over 90% forward sold for this financial year.
Despite the challenges, our sites operated successfully across the country during the period, enabled by our extensive COVID-19 working practices and protocols. As a result, construction activity in the first half was slightly ahead of planned output, with an average of 298 equivalent homes, including JV's, constructed per week. We enter our second half with a reduced level of work in progress carried forward at December 2020 compared to June 2020 and, as a result, a greater reliance on construction activity in the half year ahead.
Under the latest regulations to address the recent increase in coronavirus infections, we are able to continue site based construction across Britain. Our sales offices continue to operate on an appointment basis in England and Scotland but have been required to close in Wales. Our industry-leading and British Safety Council accredited COVID-secure policies are fully embedded and our first priority is to keep our employees, sub-contractors, suppliers and customers safe. We continue to manage the operational challenges created by COVID-19 across our business including providing flexibility for those with childcare responsibilities and supporting our clinically extremely vulnerable employees who are unable to work from home.
https://www.investegate.co.uk/barratt-d ... 00029963K/
