PROLONGED demand has helped a housing firm build profits.

Barratt Developments says buyer confidence, buoyed by mortgage availability and Help to Buy support, has lifted sales to new highs.

According to latest results, released yesterday (Wednesday, February 22), sales excluding deals in London stood at their best for nine years in the six months to December 31.

The increase meant pre-tax profits were nearly nine per cent better off at £321m with profit from operations also stronger at £324m, despite revenue falling 3.2 per cent to £1.8bn.

Total sales stood at 7,180, compared to 7,626 a year ago, with London’s slowing property market weighing heavily on the drop after deals fell from 842 to 367 in the capital.

However, bosses at the company, founded in the 1950s when Sir Lawrie Barratt built his own home in Newcastle, say they expect sales in London to pick up in the second half of the year.

They also said the business would benefit from the impact of forward sales, which stand at a record £3bn.

David Thomas, chief executive, said: “We have delivered another very strong first-half performance.

“With a record forward order book, strong consumer demand and a positive lending backdrop, we remain confident in our outlook for the full year.”

Earlier this year, Mr Thomas said the company, which includes Barratt Homes and David Wilson Homes, and has developments in Spennymoor and Consett, in County Durham, and Northallerton, North Yorkshire, had worked hard to overcome issues with a build programme and a pricing review on some London sites to ease stamp duty and EU referendum jitters.

He added: “We remain a housebuilder of choice; the fundamentals of the market are robust.”

The company’s North-East division has also revealed plans to strengthen its local roots through new developments across the region.

Those projects include Five Acres, in Barnard Castle, County Durham, The Drive at Mount Oswald, on the outskirts of Durham City, and The Grove, based at Wynyard Park, near Billingham.

Bosses said the schemes will deliver new jobs and provide employment for existing sub-contractors, adding they will cover bricklaying, electrical and landscaping positions.