Trading Statement

Barratt Developments PLC
17 January 2008



Immediate Release                                                17 January 2008

                            Barratt Developments PLC
                                 TRADING UPDATE

Barratt Developments PLC is today issuing a trading update for the 6 months to
31 December 2007, ahead of interim results, which will be announced on 27
February 2008.

Highlights

   • Robust margins in line with management expectations.
   • Average selling prices maintained and costs reduced.
   • Strong land bank and tighter investment criteria reducing second half
     spend.
   • Encouraging forward sales of £1.26bn.
   • Operational integration of Wilson Bowden complete and synergies on
     target.

Mark Clare, Group Chief Executive commented,

'Against a backdrop of a more difficult housing market, we have continued to
trade satisfactorily with prices holding up and costs reduced.

Whilst the historically strong Spring selling period is ahead of us it is still
too early to know what the market will bring. However, we have entered the New
Year with an encouraging forward order book, increasing outlets and falling
interest rates.'

Sales
On a statutory basis, total completions increased by 26% to 9,056 (2006: 7,206)
and exceeded our estimate given in November of 8,750 units. Private completions
were 24% higher at 7,177 (2006: 5,791) and social housing completions rose 33%
to 1,879. The average selling price of £177,900 (2006: £165,000) increased 8%.

On a pro forma basis (assuming Wilson Bowden had been acquired on 1 July 2006),
total completions fell from 10,623 to 9,056 reflecting an expected reduction in
outlets, lower buy to let activity and tougher market conditions.

Private average selling prices rose 0.5% to £199,900 (2006: £199,000). Social
average selling prices rose 4.9% to £93,300 (2006: £88,900). Overall, total
average selling prices decreased by 0.9% to £177,900 (2006: £179,500) reflecting
mix changes between private and social completions.

Margin
In what has been a more challenging environment, we have continued to pursue our
strategy outlined in the Interim Management Statement of protecting our margin
rather than driving for volume. Our focus continues to be on holding selling
prices whilst delivering cost savings and this should enable us to deliver a
first half operating margin well within the range of previous guidance.

Land
We continue to manage our balance sheet prudently and as a result of tightened
land buying criteria we now expect spend this year to be circa £0.3bn below our
previous guidance of £1.5bn.

Our land bank has increased marginally to c. 113,500 plots (December 2006
proforma: 109,300), of which 79% is owned and 21% is agreed subject to contract.
This equates to 5.3 years supply at 2006/7 volumes (December 2006 proforma: 5.1
years).

Borrowings
Half year borrowings were in line with expectations at approximately £1.7bn,
well inside our committed facilities and banking covenants.

Integration
The operational integration of Wilson Bowden is now complete and good progress
has been made on the rollout of the new IT systems. We are confident of
achieving our synergy targets of £30m in 2007/8 rising to at least £60m the
following year.

Outlook
Our forward order book stands at £1.26bn (2006 pro forma: £1.34bn) and taking
account of completions to date and those forward sales expected to complete in
the second half, we have now secured 69% (2006 pro forma: 74%) of the year's
forecast volumes.

The historically strong Spring selling period is ahead of us, but it is still
too early to tell what the market will bring. However, we enter the New Year
with a more favourable interest rate environment, with an encouraging forward
order book, an increasing number of outlets and a good geographic and product
spread. We believe that the market fundamentals, which support the industry,
remain strong.

A conference call for analysts and investors will be held at 8-30am today.
Please contact Weber Shandwick Financial on 020 7067 0700 for the dial in
details. A recording of the conference call will be available on the Investor
Relations section of our website www.barrattdevelopments.co.uk, from 11am.

                                    - ends -

For further information please contact:
Barratt Developments PLC
Mark Clare, Group Chief Executive
Mark Pain, Group Finance Director
James Mason, Head of Investor Relations                            020 7299 4880

For media enquiries, please contact:
Weber Shandwick Financial
Terry Garrett / Nick Dibden                                        020 7067 0700




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