Trading Statement

Barratt Developments PLC
07 July 2004

7th July 2004

                            BARRATT DEVELOPMENTS PLC

                                 TRADING UPDATE


Barratt Developments PLC, Britain's largest housebuilder, is providing the
following trading update for the financial year just ended, 30th June 2004,
ahead of its preliminary results which will be announced on 22nd September 2004.

We are pleased to confirm a successful conclusion to the financial year just
ended. Our objectives have been met and, accordingly, we expect to announce
pre-tax profits ahead of the current market consensus, achieving our 12th
consecutive year of growth.

As previously indicated, we have again seen good volume growth. UK completions
rose to circa. 14,000, with our USA completions also improving. Average UK
selling price at around £165,000 was approximately 8% up on last year. Operating
margins improved in both the UK and the USA and all divisions operated
profitably throughout the year.

Our land bank has been maintained at around 56,000 plots and all detailed
planning permissions are in place to achieve good growth for the year ahead. We
have exercised prudence in the land market over the past year through our
increased return requirements but, nevertheless, the land bank is equivalent to
four years' supply at current volumes.

Despite our investment in land and work in progress, we have achieved an even
stronger cash in hand position for this year with nil gearing at the year end
and average gearing throughout the year at approximately 14%.

Forward sales are up 10% to circa. £880m - a new record.

As we expected, following recent increases in interest rates, the market has
been returning to normal conditions over recent months and should now be more
sustainable for the future. We expect selling prices to rise much more modestly
in the year ahead, probably in line with earnings, at around 4% - 5% p.a.
nationally.

The UK market fundamentals remain sound. In addition, new housing stock
availability across the country is very limited and future supply also extremely
limited due to ongoing delays in the nation's planning system. Despite current
market uncertainties, these factors should continue to underpin the market going
forward.

In summary, we have produced another record year. Forward sales stand at record
levels and all planning permissions are in place to achieve a further year of
growth. We are financially strong, have unique strengths and are well positioned
for the future.

Enquiries:-

Barratt Developments PLC                            Weber Shandwick Square Mile
David Pretty, Chief Executive/                                   Terry Garrett/
Colin Dearlove, Finance Director                                    Nick Dibden
Tel: [phone]                                           Tel: [phone]




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