By Aby Jose Koilparambil
(Reuters) -UK homebuilder Barratt said on Wednesday it expects the housing market to remain difficult over the coming months and refrained from providing a full-year profit forecast, citing the "uncertain" outlook.
The UK's largest homebuilder reiterated annual home building targets would be 20% lower than last year as affordability issues, stoked by expensive mortgages and a prolonged cost-of-living squeeze, pummel demand in the sector.
"The trading environment remains difficult, with potential homebuyers still facing mortgage challenges," CEO David Thomas said.
The FTSE 100-listed company said it will focus on driving revenue through multi-unit sales to the private rental and affordable housing sectors, and giving out incentives to boost demand.
Weekly net private bookings fell to 169 units between July 1 and Oct. 8, lower than 188 homes in the year-ago period, Barratt said, but reiterated its annual build target of 13,250 to 14,250 homes.
The Coalville, UK-headquartered company said total forward sales - a key metric gauging near-term demand - stood at 9,221 homes as of Oct. 8, down about 31% year-on-year.
Barratt said it expects its "highly selective approach to land" will continue throughout the fiscal year ending June 30.
"In-line with Bellway (LON:BWY) commentary yesterday, Barratt did not see an autumn selling season pick up in activity," RBC Capital Markets analysts wrote in a note.
In an AGM trading statement that was shorter than the ones issued in previous years, Barratt did not disclose details such as private average selling price, new site openings, or land plots approved, among others.
Barratt's smaller rival Bellway on Tuesday said it expected its sales rate to improve only in calendar 2025.
Shares in Barratt dropped about 3% by 0821 GMT, with other builders in the housing sector also falling after hotter-than-expected UK inflation stoked concerns of a further rise in interest rates.