Largest UK housebuilder Barratt hits record pre-tax profits and builds highest number of homes in a decade

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Largest UK house builder Barratt hits record pre-tax profits (Source: Getty)

The UK's largest housebuilder Barratt Developments has announced record pre-tax profits of £835.5m for the year after building its highest number of homes in a decade.

The company said it had built 17,579 homes in the year to June – an increase of one per cent on the previous year.

Its average selling price also rose by five per cent to £289,000.

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Chairman John Allan warned of “political uncertainty” surrounding Brexit but remained confident in the housing sector and the business itself.

But the firm did express concerns over the impact of Brexit on the supply of skilled labour and imported materials.

Allan said: “Market conditions remain good with a wide availability of attractive mortgage finance, which, alongside Help to Buy, continues to support robust consumer demand.

“The group is well positioned with a substantial year-end net cash balance, healthy forward sales position and an experienced management team.”

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Despite the 9.2 per cent rise in pre-tax profits, the company's share price has lost almost a fifth of its value since the beginning the year as analysts said investors were concerned by interest rates, Brexit and the future of the government's Help to Buy scheme.