Programme(s) Date & time Subject/Interviewee Contact numbers:

BBC Radio 4 Today Wednesday 11 July 2012 07.19 New homes Mark Clare 020 7921 2771

Simon Jack, business correspondent: We can talk to the boss, Mark Clare. Good morning to you. Mark Clare, group chief executive, Barratt Developments plc: Good morning. SJ: Looking at these numbers, they dont seem to tally with the moribund housing market at all. MC: Well, theres no doubt that the market remains challenging, but what weve shown with these results that, even against that backdrop, we can increase production; weve generated substantially more employment as a result; and, of course, most importantly, were building the homes this country we needs. And were desperately short of new homes. SJ: Where are you building them? MC: Pretty much everywhere. I mean, its a myth to think were only building in the south east. Our sales have improved right across the country. Theres no doubt that the south east has stronger selling prices, but we are building right across England, Scotland and Wales. SJ: I noticed that you say in your statement 20% of your completions were helped by shared equity schemes, and of those, two-thirds of that were Government schemes. So that means that these initiatives are working? MC: They are, they absolutely are, and, of course, theres a new scheme thats just being launched which will help tens of thousands of people get 95% mortgages. And were absolutely behind that, and we believe it will be very successful. SJ: But theyre some people have said theres been limited take-up on that, because the lenders involved are still charging rates which are too high. MC: Well, I think its early days. The scheme has only just come in. We are starting to see the volumes increase. We do believe it will be even more successful than previous schemes, so we absolutely believe it will make a difference going forward. SJ: I noticed that the shared equity means that you take some of that risk yourself, and you say that you are going to have nearly 200 millions worth of equity on your balance sheet. Is that a risk worth taking? MC: Well, I think we have to recognise with the banks pulling back on lending over the last five years, we have had to play our part. So we have stepped in to some extent. But weve very comfortable with the valuation of those assets on our balance sheet but of course, as we move to the new schemes, then we expect those numbers to start to fall away. SJ: And what kind of houses are you building? I mean, some of the other housebuilders have moved away from the one and two-bedroom unit houses, or flats, into higher more bedrooms, because the first-time buyers simply cant get the financing. Is that still true?

MC: Yes, it is. I mean, unless the first-time buyers can access these Government schemes, its very difficult for them to get on the housing ladder. So we are building more family homes, larger homes, and of course our average selling prices continue to go up. Thats because the homes are getting bigger, because were selling to those people who actually have funds and equity in their own homes, who can now buy. SJ: There have been big changes to planning regulations. Some say theyve been watered down at the last minute, but I just wondered, from your perspective, have you seen a change in the planning regime in this country? Is there less nimbyism? MC: Well, Im not sure about less nimbyism; what we are seeing is more local plans coming together, and thats the key for the new planning system that local authorities are deciding where they want these new homes built. But the onus still rests with us, because planning is always going to be about local views so it is actually for housebuilders to step up. Thats what weve done, and were seeing some real successes if we talk to the communities very, very early on in the process. SJ: OK. All right, Mark Clare, boss of Barratt Developments plc, thank you very much indeed. MC: Thank you. Ends