Barratt scores £1bn profit as prices set new records

BARRATT Developments has reported annual profit of over £1 billion for the first time in results published on the day average house prices reached fresh records in London and the UK.

- Michael Hunter

The landmark profits came at a time when the industry is bracing for the impact of sustained increases in interest rates and the higher mortgage costs that come with them, as the Bank of England seeks to tame runaway inflation.

But there is little sign of a slowdown, even with the cost-of-living crisis biting and official forecasts pointing to inflation of more than 13% before the end of the year.

Average house price data from one of the UK's biggest mortgage lenders, also out today, showed a rise to fresh records in London and the wider UK in August, indicating that a fall in July may have just been a blip.