UK-based homebuilder Barratt Developments has said that it expects a reduced range of total home completions in the financial year 2024 (FY24) when compared to the year before.

In its trading update for the year ending 30 June FY23, the company expects completions to be between 13,250 and 14,250 units in the financial year ending 30 June FY24, a decline from 17,206 units the previous year.

The company said that this outlook was based on the existing unfavourable market conditions and persistent inflation in the country, as well as a higher interest rate environment and other variabilities for the year ahead.

The company's net private reservation rate for FY23 was 0.55 per active outlet per week, a decrease of 32.1%.

Barratt noted that it experienced a significant deterioration in demand during the second quarter of the year, with an improvement in the third quarter.

However, reservations slowed more than normal seasonal trends from mid-May to the end of June this year.

Barratt CEO David Thomas said: "During a year of economic and political uncertainty, we have delivered a strong operational and financial performance while maintaining our industry-leading quality, customer service and sustainability credentials.

“Whilst the trading backdrop has become more challenging in recent months, with many of our customers facing significant cost of living pressures, we have responded decisively - increasing our reservations into the private rental sector, using incentives for customers in a disciplined way, and flexing our build activity, land-buying and operating costs to reflect market conditions.

“As a result, we enter the new financial year in a robust financial position with a solid forward order book and we are ready to respond to any further changes in the housing market."