HOUSEBUILDER Barratt Developments is on course for an 11th successive year of growth after posting record interim profits of £105.3m.

The figure for the six months to December 31 represents an increase of 36 per cent on 2001 and comes after a buoyant period for the housebuilding sector.

Low interest rates and a shortage of new homes have stimulated the market, although Barratt said it had been helped by its wide geographical spread.

It covers all market sectors and prices of homes ranged from £62,000 to £1.6m, figures from the Newcastle-based company showed.

All the regions traded successfully, although the company said there had been some moderation in the top end of the market in the south.

Demand for new homes remained robust, according to group chief executive David Pretty.

"Our sales are well up on last year and we are continuing to see a good level of demand on our sites across the country," he said.

"We have seen a return to a more normal and stable market, which we welcome. It is underpinned by low interest rates, good affordability and high employment levels. In addition, planning constraints are ensuring that the supply of new homes cannot meet demand."

During the six months to 31 December, 2002, Barratt sold 6,102 homes in the UK, 11 per cent up on the previous year, with the average selling price of a new Barratt home increasing to £145,500.

Barratt is building on 27 developments in the region.