MIDAS VERDICT:

The demise of the property market after the stamp duty holiday appears to have been much exaggerated, Nationwide’s house price survey showed last week. The 2.1 per cent increase in prices between July and August is good news for Barratt and its shareholders as it shows we still want to buy new homes even if we have to shell out for stamp duty.

Housebuilders are seldom the most exciting stocks on the market, but they are solid, and Barratt is made more so by a large pile of cash. The prospect of a special dividend is also a draw for income seekers, and strong forward sales should be a comforting prospect for investors. Buy.