Barratt urges Government to cut business regulation

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The firm forecast a second-half profit after racking up 18 months of losses including £48.5 million in the first half of the year.

Chief executive Mark Clare said the average selling price was expected to be about 15% higher in the second half than in the period last year as the housing market recovers and it sells more houses than flats.

He said: "While the market has seen a measure of recovery we remain cautious given continuing economic uncertainty and constrained lending."

Clare said the Government's priority was to cut the deficit: "We hope that the Tories will follow up on their pledges to cut waste, to cut costs, and to cut regulation."