British housebuilder Barratt Developments said recent bad weather had led to a flurry of online enquiries as it reported stronger first-half trading, adding to hopes the worst is over for the sector.
Chief executive Mark Clare said online enquiries more than doubled in recent weeks as a countrywide cold snap forced many people to stay indoors or work from home.
"People haven't been able to get to the sites, but the good news is that people have been doing an awful lot of shopping online," said Mr Clare.
"I'd hope that once the snow clears, those people will visit our sites," he said, adding nearly all house purchases now originate from web enquiries, with 4,000 leads on average a week from its websites.
Barratt shares were up 2.1 per cent at 9.25am.
The housebuilder, one of the three largest in the UK, said a switch to houses from apartments in its portfolio mix had led to selling prices rising 4 per cent to an average of £167,000. This is set to rise by up to 10 per cent by the end of its financial year.
House prices rose for a sixth consecutive month in December, according to mortgage lender Halifax today, with prices in the fourth quarter 3.5 per cent higher than in the third.
But despite growing optimism in the sector, with rival Persimmon painting a similar picture to Barratt last week, industry participants see prices dipping again on average this year.
Many UK companies have taken a hit from the snow disruption, with estimates from industry group the Forum of Private Business suggesting the cost of employee absenteeism alone could reach as much as £450 million.
Babywear retailer Mothercare said yesterday extreme weather conditions had knocked third-quarter sales, while insulating and roofing specialist SIG forecast a double-digit dent in sales percentages in January on transport woes.
Barratt said it delivered 5,028 homes in the year to June and was on track to meet its full-year target of 12,000, with total forward sales up 43 per cent compared with the same period last year at £651.2 million.
"Today's trading update provides some encouragement. While management cautions on mortgage availability and economic uncertainties, key metrics are improving," said analysts at Cazenove.
Margins will be a key focus in 2010, with Barratt predicting its operating margin ro rise in the second half. "In this market, it's all about margin recovery, so we are absolutely not chasing volumes, to do so when there is still limited demand would be folly," said Mr Clare.
Net debt was reduced to £610 million from £1.28 billion in June after the group completed a rights issue and placing at the end of 2009.
Reuters