Barratt Developments plc

In 1953, Lawrie Barratt, an accountant who was frustrated at the high purchase prices of houses for first-time buyers, bought five acres of land at Darras Hall, near Newcastle upon Tyne and built his own home on the site. Following this experience, he joined forces with Lewis Greensitt, a Newcastle builder, to establish a house building business, which was initially known as Greensitt Brothers, in 1958.The company was floated on the Stock Exchange in 1968 as Greensitt & Barratt by which time the company was building 500 homes a year and the growth plan had been "fully achieved". Lewis Greensitt left shortly after the flotation and in 1973 the company was renamed Barratt Developments. The 1970s saw Barratt making a series of acquisitions, transforming the company from a local housebuilder to a national firm building around 10,000 houses a year, and rivalling George Wimpey in size. The largest of these acquisitions were the Manchester firm of Arthur Wardle and the Luton-based Janes.Central to Barratt's expansion was its high-profile marketing, with national advertising, featuring Patrick Allen and a helicopter. Barratt provided starter homes for the first-time buyer and offered part-exchange to those trading up. In the year to June 1983, Barratt sold a record 16,500 houses making it by far the largest housebuilder in the country. In 1983 and 1984 Barratt was hit by two successive ITV World in Action programmes, the first criticising timber-framed housing and the latter, starter homes. Within two years, unit sales had more than halved. Lawrie Barratt led a total restructuring of the company, abandoning timber-framed construction, launching a new product range, and concentrating on the more profitable trade-up market. In the late 1980s, Margaret Thatcher famously purchased a house on one of Barratt's most upmarket estates, in Dulwich, London.In 1991, the company was badly hit by the recession and recalled Lawrie Barratt from retirement: he retired for good in 1997 and remained life president until his death in December 2012. In 2004 the company sold Barratt American, its US operation, established in the 1980s in California. Following the house price boom in the later 1990s and early 2000s, which saw a number of Barratt's largest rivals, such as Persimmon, George Wimpey and Taylor Woodrow all acquire rivals to increase in size, Barratt broke its tradition of 30 years and acquired Wilson Bowden, best known for its David Wilson Homes brand, for £2.7 billion in 2007. This brought the David Wilson, Ward Homes and Wilson Bowden Developments brands to the group.In 2008, the company secured a restructuring of its banking covenant package. The non-profit Barratt Residential Asset Management division was established in 2012 to provide property management services on Barratt London developments.David Thomas was appointed chief executive in succession to Mark Clare in 2015. The company purchased Oregon Timber Frame for an undisclosed sum in 2019.In 2020, Barratt Developments set science-based carbon reduction targets as well as making a commitment to build zero carbon homes from 2030 and become a net zero business by 2040. Examples of sustainable developments include the Green House at the BRE Innovation Park, Hanham Hall near Bristol, Derwenthorpe, near York and Kingsbrook, near Aylesbury.As of 2020, Barratt Developments had achieved a 5 star rating in the Home Builders Federation new home Customer Satisfaction Survey for 11 consecutive years. In the 2020 NHBC Pride in the Job awards for site managers, Barratt site managers won 92 Quality Awards, seven of the eleven available Regional Awards and Midlands-based site manager Kirk Raine won the Supreme Award in the large builder category.