A HOUSEBUILDER says buyer confidence is returning to the North-East market after seeing profits double.

Barratt Developments says sales are rising as demand for new properties continues to grow.

Bosses said the increase has been supported by the Government’s Help to Buy programme, which offers equity loans on new builds to help buyers secure properties with a five per cent deposit.

Barratt bosses announced the positive shift after a 103 per cent increase in group pre-tax profits to £390.6m for the year to June 30.

It added average selling prices lifted 12.9 per cent in the year to £241,600, with total completions 8.6 per cent higher at 14,838.

The company, founded by North-East property tycoon Sir Lawrie Barratt, operates the Barratt Homes and David Wilson Homes divisions, and has a number of developments in the region, including sites in Durham City, Spennymoor, County Durham, and Stockton.

Mike Roberts, Barratt Homes’ North-East managing director, told The Northern Echo: “There’s been growing confidence in the local housing market since the start of 2014, which has continued, with our sites selling through quickly.

“Visitor levels and sales since the start of our financial year on 1 July have been well ahead of a year ago, demonstrating the strong demand for new homes.

“Help to Buy has generated huge interest and we’ve now sold more than 200 new homes through it across the region.

“Part exchange, which we’ve been offering for more than 30 years, also continues to be very popular.

“We are starting on a number of new sites, including Mount Oswald, in Durham City, where we are building 60 luxury homes under the David Wilson Homes brand.

“It has attracted huge interest and we expect demand will be high.”

Mark Clare, chief executive of Barratt Developments, said the significant improvement in the company's performance was the result of its £3.8bn investment in land since the middle of 2009, as well as the recovery in the housing market.

He said: “Our disciplined approach will support a further significant increase in performance this year and we are now targeting a return on capital of at least 25 per cent by 2017.”