Barratt Developments Share Discussion Threads

[hiddendepths] 28/2/2018 07:58

House prices are around the long term average when it comes to affordability. The reason they're so high is simply because of mortgage interest rates being so low. The reason that housebuilders are declining is that there is increasing realisation that the outlook for interest rates has picked up. That said, it would be economically disastrous for interest rates to rise much so it won't happen.

I suspect the fears are being overdone and an excellent buying opportunity is being created. Getting the timing right is tricky though.

[taffee] 27/2/2018 10:21

The market is telling you it doesn't believe the dividend is sustainable in my experience

Not much sign or problems in the builders updates but with everything thrown at the property market bar throwing money out of helicoptors(on past performance very possible!) things are stalling/falling in the second hand market

We are in the biggest property bubble in our history and the market believes the tide is changing particularly with interest rates likely to rise

I would also point out Barratts are suggesting modest growth in completions I believe

[1squintyflinty] 23/2/2018 11:01

There is a hike of 15% on the interim dividend.If this is rolled out to the final plus special dividend ,we are looking 8.42% dividend yield!!!

[cwa1] 22/2/2018 11:36

Modest vote of confidence:-

The Company announces that John Allan, Chairman, has purchased 8,500 ordinary shares of 10 pence each in the Company on 21 February 2018.

[dr_smith] 21/2/2018 13:32

I assume:
1) If results as expected, then no reason for price change, only if better than expected.
2) Some investors are purely short term, like butterflies, buying pre-results and only holding to results day, then selling, so may cause short term dip in share price

Personally I am a long term holder.

[spcecks] 21/2/2018 12:35

Also thought results were very good.

[ddubzy] 21/2/2018 11:15

Well I thought the update was good. Market doesn't seem to agree though.

[hiddendepths] 21/2/2018 07:56

Awesome results from an awesome company!

[taffee] 17/2/2018 06:30

If there was a shortage of property why would you need all the demand side props?

[spcecks] 16/2/2018 11:13

Yes they are affordable....as soon as they are built clients are moving in as there is a shortage of houses in Scotland.

[rwlly] 16/2/2018 10:42

specks, are they affordable in Scotland?

[spcecks] 14/2/2018 19:07

Up in Scotland we can't build them quick enough.

[rwlly] 14/2/2018 17:03

Thousands of new houses being built around nantwich Cheshire,local estate agent says market hardly moving

[spcecks] 14/2/2018 11:23

Added some more to my long term holding as good entry price and nice dividend.

[taffee] 14/2/2018 10:09

doesn't look too promising!....lovely bear chart

[salver2] 06/2/2018 10:44

You also forget the nice digi payout between those two figures !!

[taffee] 06/2/2018 08:20

700 to 550 bear stock territory
Nice payday for fellow bears!

[rwlly] 06/2/2018 04:17

Will be an interesting day.

[taffee] 04/2/2018 09:00

Yes with props of obscene proportions it's all stalling...
With leverage at alltime highs and prices in stocks as high
As 1929 and 2000 what could go wrong? and when it does what can
Stop it..... Nothing!

[vatteton] 02/2/2018 16:25

Yep,
PMI figures pretty dire.

[rwlly] 02/2/2018 15:39

Looks like the party is over for builders.

[18bells] 23/1/2018 00:32

There seems to be a lot more 'corporate renting' schemes in London whereby a fund management will cover the cost of building and manage the site within the rental market. The development can always squeeze that extra 5% on rental costs and if the tenant cannot afford it bye bye they are out and the next sucker moves in on a 12month contract. Sit outside your local corporate renting site at the weekend and there's always someone moving in or out. Some retail parks are being converted by property managers - retailers struggling to pay top notch on rent. So converting the sites to residential high raise blocks will on the long term offer 5% plus yields. The nice bit you can also thrown in discounted Internet, Sky and so on charges within the rent and take a cut! Very soon the CMA will be announcing their first review regarding district heating costs that some builders take a cut when subcontracting the onsite heating system. There is speculation the CMA could impose strict rules to ensure customers get a fair deal during a 25yr heat contract. Could this be an impact? Is Barratts and other builders in the rental market? Will future new builds be less likely building for private ownership especially in major cities? The catch is House builders may in the longer term be building high raise developments immorally without UK home buyers. I've not seen any records but one does wonder what percentage of Barratts sales relate to overseas? Such practice may be reviewed in the near future if 'affordable houses' and 'build for UK owners' policies are introduced. Every sector has its day and maybe the trend will change its course soon. caveat emptor.

[cupra kid] 22/1/2018 14:25

Bullshot - You can't pick out one site that has ceased building and suggest more people can't afford new homes.I work on different building sites on a daily basis and I can tell you it's still build, build, build as the demand is still very strong.

[bullshot] 11/1/2018 21:36

Beware of 3 Issues......1 - strange lack of confidence in the Sector...2 - a different Winter suggesting many productive days could be lost to extreme weather.... 3 - Fewer People can afford a New House , Customer numbers are declining with one large Site in the Vale of York postponing further building ( no demand )

If the trend is our friend this Sector is already in a "sideways Trend"

[rwlly] 11/1/2018 18:18

Even the mail is having a go at builders excess profit on the back of help to buy.