A trading statement from the group today said Barratt expects to deliver pre-tax profits of £40m before exceptional items this year compared to a £33m loss last time.

Margins are on the rise to 7.8% from 5.9% in the previous period as the average selling price of homes jumped 5% to £204,000.

Group chief executive Mark Clare, said:  “Whilst we have seen some recovery following the difficult Autumn selling season, trading conditions in some areas outside London and the South East remain challenging.

“In London, we continue to benefit from a strong market position, with our developments selling well.

“FirstBuy is a timely boost and is already proving popular, but market recovery cannot be sustained without improved lending conditions.  Our focus remains on improving margin rather than driving volumes.”

Barratt is currently building on 377 sites and that is set to rise to 400 by the end of the year.

The firm bought £454m worth of land during the year and is sitting on a land bank of 47,900 plots which represents more than four years of supply.