A HOUSEBUILDER says strong demand is continuing to fuel its growth – but bosses have admitted Brexit indecision may check future progress.

Barratt Developments’ annual sales have increased as government schemes, mortgage lender competition and property shortages provide fertile ground for expansion.

However, officials have warned EU referendum uncertainty has forced a re-think over land plans, which could affect future building work.

Construction companies’ share prices have tumbled markedly after the Brexit vote and firms are hoping for fresh Downing Street support to ensure momentum built up before the referendum isn’t drowned out by buyers’ EU jitters.

But despite such worries, Barratt, founded by North-East tycoon Sir Lawrie Barratt, said it remains well positioned to benefit from people keen to climb the property ladder.

The company, which includes Barratt Homes and David Wilson Homes, revealed sales increased 5.3 per cent to 17,319 in the year to June 30, with total average selling prices 10.6 per cent better off at £260,000.

Total forward sales were steady at £1.76bn but the company approved more than £1bn worth of land to buy in the period, which it says equates to nearly 24,500 plots, nearly 7,500 more than a year ago.

David Thomas, chief executive, said the company was in a strong position, though he added caution over future land arrangements.

He said: “The group has healthy forward orders and an experienced management team, and the sector continues to receive government support, mortgage availability is good and there remains an undersupply of new homes.

“We saw good consumer demand and, during the year, the mortgage market remained positive, with increased competition among lenders resulting in attractive finance for customers.

“However, following the EU referendum, we are mindful of the greater uncertainty facing the UK economy.

“It is too early to draw any conclusions regarding market conditions but we had contingency plans and have taken appropriate measures to reduce risk, such as reassessing land approvals, as we monitor the market.”

Barratt Homes has properties in Spennymoor and Consett, in County Durham, and Northallerton, in North Yorkshire, while its David Wilson division has homes in Nunthorpe, near Middlesbrough, Houghton-le-Spring, in County Durham, and Washington, in Wearside.

Its Brexit response follows that of fellow regional housing firm Persimmon, which has offices in Bowburn, near Durham City, and pointed to long-term unfulfilled demand as an indicator of future growth.