Barratt expects to beat forecasts as housing demand soars against tight supply

Housebuilder Barratt said it expected a 45% jump in pre-tax profit up to £565m (€786.6m, $869.6) in the year to 30 June 2015, 2.6 percentage points higher than the market expectations.

In an interim trading statement, the company said that sales are expected to go up by 29.6% to £1.7bn.

"The housing market has remained strong and our operating performance has been very good," Barratt chief executive David Thomas said. "Over the last 12 months we have opened 176 new developments, increased our housing completions by 11% and committed £1bn of land investment for future housing."

Barratt reported it saw strong demand in all its regions and said that plots sales went up by 28.8%.

The number of new projects launched in the financial year so far rose by 29.4% and the company said it had almost 400 active sites on 30 June.

Annual house price growth is at a one year high, according to an index by Halifax on 8 July, as demand increased and the market is feeling the tight supply.

Builders like Barratt and Persimmon have benefited from the tight market, showing a rise in sales and increase of sale volumes.