Barratt chairman takes first stake

Barratt Developments chairman Bob Lawson has begun building a stake in the housebuilder with the purchase of nearly £100,000 worth of shares.

He took 151,841 shares at 65.3p a time on the same day Barratt shares advanced as high as 75p in spite of a gloomy trading update in which it warned that more write downs are likely as house prices keep falling.

"Conditions in the housing market have remained extremely challenging with poor consumer confidence, continuing restrictions on the availability of mortgage finance, and further pressure on pricing," the firm said.

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"Against this backdrop, Barratt continues to focus on maximising sales revenues, reducing costs and generating cash to reduce debt levels."

Average selling prices on a like-for-like basis are expected to have fallen by between 15% and 20% at the end of December 2008 from their peak in July 2007, Barratt said, adding that increased discounts are exerting continued downward pressure on margins.

Lawson, 63, became chairman of Barratt on July 1. He is also chairman of the recruitment group Hays. He was educated at Cambridge University and is a qualified engineer with an MBA.

Shares in Barratt have fallen by nearly 90% over the past year amid turmoil in the UK housing market and in line with losses across the housebuilding sector.

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