Rate rise challenge

THE housing market can withstand higher interest rates amid booming demand, says a major British builder.

Barratt Developments chief executive David Thomas predicted another year of growth despite the Bank of England raising rates from 0.25pc to 0.5pc. He said: ‘Rates are only back to where they were prior to the EU referendum. When you look at it against historic norms and competition in the mortgage market and Help to Buy consumers are getting a good deal.’

Barratt reported a 6.8pc rise in the company’s half-year profits, to a record £342.7m.