Barratt Developments
Encyclopedia
Barratt Developments PLC is one of the largest residential property development companies in the United Kingdom
. It was founded in 1958 as Greensitt Bros. but control was later assumed by Sir Lawrie Barratt
. It was originally based in Newcastle upon Tyne
but is now located at David Wilson's former offices in Coalville
. It has been listed on the London Stock Exchange
since 1968 and is a constituent of the FTSE 250 Index
.
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. Allied to this was substantial organic expansion.
Central to Barratt’s expansion was its high profile marketing, with national advertising, featuring Patrick Allan and the 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. It was to be more than twenty years before Barratt regained those volumes.
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 1991 the Company was badly hit by a recession and recalled Lawrie Barratt from retirement: he retired for good in 1997 and remains Life President of the Company.
In 2004 the Company sold Barratt American, its US
operation, established in the 1980s in California
.
Mark Clare was appointed Chief Executive in succession to David Pretty in 2006.
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 increases in size, Barratt broke its tradition of 30 years and acquired Wilson Bowden
, best known for its David Wilson Homes brand, for £2.7bn 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.
famously purchased a house on one of Barratt's most up market estates, in Dulwich
, South London
.
Barratt also used to have a self-created upmarket brand, KingsOak Homes but now uses the David Wilson Homes brand for this purpose.
For a long time the company also used the slogan ‘Britain’s Premier House Builder’. The reasons for this is that Barratt is widely regarded as Britain’s best-known house builder amongst the general public, and some people still view Barratt Homes, along with George Wimpey
, as the two large, mass-volume house builders in the UK.
Following the acquisition of Wilson Bowden in 2007, the Management decided to give the Barratt corporate identity a facelift. The same logo used by Barratt Developments PLC for corporate purposes and Barratt Homes for marketing purposes was scrapped, and the there are now two, slightly different logos for the two purposes, although they both still feature a tree.
In addition, the Barratt Homes slogan was changed to ‘built around you’, emphasising that for the previous fifty years, customer feedback had gone back into the building process to improve house building. The relaunch included a massive TV and newspaper advertising campaign.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It was founded in 1958 as Greensitt Bros. but control was later assumed by Sir Lawrie Barratt
Lawrie Barratt
Sir Lawrence Barratt is the founder of Barratt Developments, one of the largest housebuilders in the United Kingdom.-Career:Brought up in the North East of England, Barratt left school at 14 and initially trained as an accountant...
. It was originally based in Newcastle upon Tyne
Newcastle upon Tyne
Newcastle upon Tyne is a city and metropolitan borough of Tyne and Wear, in North East England. Historically a part of Northumberland, it is situated on the north bank of the River Tyne...
but is now located at David Wilson's former offices in Coalville
Coalville
Coalville is a town in North West Leicestershire, England, with a population estimated in 2003 to be almost 33,000. It is situated on the A511 trunk road between Leicester and Burton upon Trent, close to junction 22 of the M1 motorway where the A511 meets the A50 between Ashby-de-la-Zouch and...
. It has been listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
since 1968 and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
In 1962, Lewis Greensitt (a Newcastle builder) and Lawrie Barratt (an accountant) acquired control of the Company and embarked on a five-year expansion plan. The Company was floated on the Stock Exchange in 1968 as Greensitt & Barratt by which time the growth plan had been “fully achieved”. Lewis Greensitt left shortly after the flotation and in 1963 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
George Wimpey
George Wimpey was formed in 1880 and, based in Hammersmith, operated largely as a road surfacing contractor. The business was acquired by Godfrey Mitchell in 1919 and he developed it into the UK’s pre-eminent construction and housebuilding firm. In 2007, Wimpey merged with Taylor Woodrow to create...
in size. The largest of these acquisitions were the Manchester firm of Arthur Wardle and the Luton-based Janes. Allied to this was substantial organic expansion.
Central to Barratt’s expansion was its high profile marketing, with national advertising, featuring Patrick Allan and the helicopter. Barratt provided starter homes for the first time buyer and offered part-exchange
Part exchange
A part exchange or part exchange deal is a type of contract. In a part exchange, instead of one party to the contract paying money and the other party supplying goods/services, both parties supply goods/services, the first party supplying part money and part goods/services.Whether a 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. It was to be more than twenty years before Barratt regained those volumes.
In 1983 and 1984 Barratt was hit by two successive ITV World in Action
World in Action
World in Action was a British investigative current affairs programme made by Granada Television from 1963 until 1998. Its campaigning journalism frequently had a major impact on events of the day. Its production teams often took audacious risks and gained a solid reputation for its often...
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 1991 the Company was badly hit by a recession and recalled Lawrie Barratt from retirement: he retired for good in 1997 and remains Life President of the Company.
In 2004 the Company sold Barratt American, its US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
operation, established in the 1980s in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
.
Mark Clare was appointed Chief Executive in succession to David Pretty in 2006.
Following the house price boom in the later 1990s and early 2000s, which saw a number of Barratt’s largest rivals, such as Persimmon
Persimmon plc
Persimmon plc is a British housebuilding company, headquartered in York, England, at a building called Persimmon House. The Company is named after a horse which won the 1896 Derby and St. Leger for the Prince of Wales. It is listed on the London Stock Exchange, and is a constituent of the FTSE...
, George Wimpey
George Wimpey
George Wimpey was formed in 1880 and, based in Hammersmith, operated largely as a road surfacing contractor. The business was acquired by Godfrey Mitchell in 1919 and he developed it into the UK’s pre-eminent construction and housebuilding firm. In 2007, Wimpey merged with Taylor Woodrow to create...
and Taylor Woodrow
Taylor Woodrow
Taylor Woodrow was one of the largest British housebuilding and general construction companies. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index but merged with rival George Wimpey to create Taylor Wimpey on 3 July 2007.-Early years:Frank Taylor was...
all acquire rivals to increases in size, Barratt broke its tradition of 30 years and acquired Wilson Bowden
Wilson Bowden
Wilson Bowden plc was a British housebuilding and general construction company headquartered in Coalville in central England.-History:Wilson Bowden was the holding company for David Wilson Homes and its commercial property subsidiary, Wilson Bowden Properties, the name being adopted at the time of...
, best known for its David Wilson Homes brand, for £2.7bn 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.
UK house building
Margaret ThatcherMargaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...
famously purchased a house on one of Barratt's most up market estates, in Dulwich
Dulwich
Dulwich is an area of South London, England. The settlement is mostly in the London Borough of Southwark with parts in the London Borough of Lambeth...
, South London
South London
South London is the southern part of London, England, United Kingdom.According to the 2011 official Boundary Commission for England definition, South London includes the London boroughs of Bexley, Bromley, Croydon, Greenwich, Kingston, Lambeth, Lewisham, Merton, Southwark, Sutton and...
.
Barratt also used to have a self-created upmarket brand, KingsOak Homes but now uses the David Wilson Homes brand for this purpose.
Commercial construction
Barratt owns and operates Wilson Bowden Developments, which develops commercial property in the UK.Tree logo
For several years, Barratt Homes has used an oak tree as its logo, and there have been at least three versions of it.For a long time the company also used the slogan ‘Britain’s Premier House Builder’. The reasons for this is that Barratt is widely regarded as Britain’s best-known house builder amongst the general public, and some people still view Barratt Homes, along with George Wimpey
George Wimpey
George Wimpey was formed in 1880 and, based in Hammersmith, operated largely as a road surfacing contractor. The business was acquired by Godfrey Mitchell in 1919 and he developed it into the UK’s pre-eminent construction and housebuilding firm. In 2007, Wimpey merged with Taylor Woodrow to create...
, as the two large, mass-volume house builders in the UK.
Following the acquisition of Wilson Bowden in 2007, the Management decided to give the Barratt corporate identity a facelift. The same logo used by Barratt Developments PLC for corporate purposes and Barratt Homes for marketing purposes was scrapped, and the there are now two, slightly different logos for the two purposes, although they both still feature a tree.
In addition, the Barratt Homes slogan was changed to ‘built around you’, emphasising that for the previous fifty years, customer feedback had gone back into the building process to improve house building. The relaunch included a massive TV and newspaper advertising campaign.