BARRATT’S STRONG FOUNDATIONS

Britain’s biggest house builder raked in record profits last year.

Barratt Developments made £835million in the year to June 30, up 9%, after building 17,579 homes, its highest number for a decade.

The forecast-beating results defied recent warnings of a slowdown in the wider sector. Barratt’s average home sold for £289,000 last year, with affordable housing making up around a fifth of sales.

Boss David Thomas said: “It has been a very good year for the group both operationally and financially.”

But analyst Robin Hardy, from broker Shore Capital, said there were reasons to be fearful.

“Prices are weakening across the market, with the rate of price inflation now below 2%, which means that rising construction costs cannot be recovered,” he said.

“Barratt remains more vulnerable to price deflation than most of its peers because its margins are much lower.”