Welcome to the new Independent website. We hope you enjoy it and we value your feedback. Please contact us here.

Business News

Barratt chief executive hints at recovery

The boss of one of the UK's biggest housebuilders came within a whisker of calling a housing market recovery yesterday, as Barratt Developments enjoyed booming sales since January and moved back into the black.

The revival in the first seven weeks of 2012 saw sales up 21.8 per cent over last year as more buyers flocked in and Barratt sold homes from a larger number of sites to meet demand.

Its chief executive Mark Clare put the improvement down to a thawing mortgage market, while the Government's new £250m FirstBuy scheme for first-time buyers with deposits was helping pent-up demand. Falling inflation is also lifting confidence by easing the squeeze on would-be buyers, he added.

"People feel better about the economy, their jobs and the housing market in general. Housing tends to be the first into recession and the first out, and we are very cautious because we have been here before, but it does feel a bit different this time," Mr Clare said. The shares – up 40 per cent since the beginning of January – added another 10.1p to 139.8p. Pre-tax profits were £21.6m for the second half of last year, better than expected against the previous year's £4.6m loss.

Rival housebuilder Galliford Try also pushed up half-year profits by 89 per cent to £32.2m.