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Bbc: Barrats 'hurt The Housing Market In The Coming Months'.

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Look like the cardboard walls and razor sharp door handle brigade are taking a wee stock dive...

ahh...brings a tear to a grown womans eye...sniff.

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http://news.bbc.co.uk/1/hi/business/7013661.stm

Barratt is the UK's third-largest housebuilder

UK housebuilder Barratt Developments has warned that interest rate rises and the recent credit squeeze will hurt the housing market in the coming months.

Its comments came as it reported a 9.3% rise in annual pre-tax profit to £427.8m ($862.6m).

Recent turmoil on the financial markets has led to mortgage lenders putting up their rates and tightening up their lending criteria.

But Barratt said the long-term picture for house prices was still positive.

Barratt said forward sales rose 67.3% to a record £1.4bn as of end-June and this had increased further to £1.7bn as of last week.

Pressure on lending institutions has led to a tightening of lending criteria and mortgage availability

Mark Clare, Barratt chief executive

See Barratt shares here

Shares in the housebuilder jumped almost 3% to trade at 746.5 pence in early trade.

But its shares are still down almost a fifth from a month ago with investors worried over the outlook for the housing market.

'Downward pressure'

The housebuilder said it was not sure how long it would take the UK housing market to recover from recent events.

"The recent credit squeeze has further affected customer sentiment and pressure on lending institutions has led to a tightening of lending criteria and mortgage availability," said Mark Clare, Barratt's chief executive.

"It is not yet clear how quickly the market will recover but we have to assume that there will be downward pressure on volumes and price inflation in the short-term."

Barratt became the third-largest housebuilder in Britain following the purchase of commercial property specialist Wilson Bowden for £2.2bn earlier this year.

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Look like the cardboard walls and razor sharp door handle brigade are taking a wee stock dive...

ahh...brings a tear to a grown womans eye...sniff.

--------------

http://news.bbc.co.uk/1/hi/business/7013661.stm

Barratt is the UK's third-largest housebuilder

UK housebuilder Barratt Developments has warned that interest rate rises and the recent credit squeeze will hurt the housing market in the coming months.

Its comments came as it reported a 9.3% rise in annual pre-tax profit to £427.8m ($862.6m).

Recent turmoil on the financial markets has led to mortgage lenders putting up their rates and tightening up their lending criteria.

But Barratt said the long-term picture for house prices was still positive.

This phrase, and variants of it, is going to be heard a lot over the next few months. Whenever I hear it my brain automatically translates it as "The short term picture is f**king terrible." :P

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Ok they managed to make a profit but that is for profitable sales made at the beginning of the year, I wonder how big their profit will be next year... And shareholders know about it as the share went from 1200 to less than 750! I think they realise the market is now overpriced as they cannot sell their houses, I even saw for the first time a Barratt advert this week on tv.

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