HOUSEBUILDER Barratt Developments has credited the booming house market for a surge in half-year profits.

Newcastle firm Barratt said all its regional markets had been buoyant during the second half of last year.

The demand for home ownership was underpinned by high employment, steady earnings growth, increasing disposable income, low interest rates and a competitive mortgage market.

Barratt sold 5,498 homes during the six months to December - a ten per cent improvement - at an average selling price of £132,200.

Turnover across the group rose 20 per cent, to £752.8m, while half-year pre-tax profits jumped 23 per cent to £77.6m.

Chairman Frank Eaton said: "The group benefits enormously from our total geographical spread of outlets and from selling to all market sectors.

"All of our regional markets are buoyant and the demand for home ownership continues to be strong."

Profits from the group's US division increased 15 per cent to £2.3m from 140 completions, despite the economic slowdown.

Barratt changed the mix of land it acquired in the US last year, giving it a lower average selling price. Mr Eaton said that had been a "timely change".

In the UK, the group has increased its land stock and now has 37,127 plots. Forward sales stand at £580m.

Shareholders will receive an interim dividend of 4.49p, an eight per cent improvement on the previous year's payout.