More cheer from housebuilding sector as Barratt sees profits leap

The FTSE 100 firm said pre-tax profits rose to £295m in the six months to the end of December, up from £210.2m a year earlier.

Chief executive David Thomas said the group delivered a 9 per cent increase in new-build completions over its first half “without compromising on the quality of the homes we’re building”.

He added the housing market remains strong thanks to “improved mortgage availability and Government support for first-time buyers”.

Rival Persimmon - the UK’s biggest housebuilder by volumes - hailed an “outstanding” performance in 2015 on Tuesday as it posted a 34 per cent jump in pre-tax profits to £637.8m for 2015.

The housing market has been bolstered by the Government’s Help to Buy programme, rising consumer confidence and record low mortgage rates.

Official figures earlier this month showed the average price of a home increased by £18,000 during 2015.

The Office for National Statistics said the typical UK property was worth £288,000, up from £270,000 in January last year - a 6.7 per cent rise.

Barratt said it had also seen a robust start to the spring selling season, with 260 net private reservations a week, although this is a slight drop on the 279 seen a year earlier.

The group said 32 per cent of its new-builds were sold under the Help to Buy scheme.

It added it was on track to complete 16,750 homes in the full year, having notched up 7,626 in the first six months.

The group also said its total average selling price rose by 10.9 per cent to £254,200 in the half year, with private selling prices up 11 per cent to £281,100.