A PROLONGED undersupply of homes allied to strong Northern demand is continuing to drive sales at a builder.

Barratt Developments says “healthy” market conditions are positioning it for further growth.

The business, founded by North-East tycoon Sir Lawrie Barratt, also confirmed Brexit-induced fears over land buying have eased, revealing it expects to sanction 15,000 plots in its next financial year.

However, officials added the company is not without some troubles, saying a pricing review is underway on some London sites to ease sales worries caused by an increase in stamp duty and the EU referendum.

The builder, which includes Barratt Homes and David Wilson Homes, has developments in Spennymoor and Consett, in County Durham; Washington, in Wearside; and Stockton, and said such Northern schemes are driving its progress.

According to a trading update covering July 1 to November 13, which was released yesterday, total forward sales were up 4.3 per cent on a year ago to £2.65bn.

David Thomas, chief executive, said: “Consumer demand is strong, supported by good mortgage availability, and sales in our Northern regions are strongly outperforming the prior year.

“We are mindful of the potential for economic uncertainty caused by the outcome of the EU referendum.

“However, market conditions remain healthy and fundamentals remain robust and we remain a housebuilder of choice.”

Mr Thomas added the business continues to be worried about skills shortages, but revealed it is spending money to boost training for its 642 graduates, trainees and apprentices.

The company also announced Scott Martin has taken over as managing director of its North-East division.