Capital leading the comeback in housing market, says Barratt

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Chief executive Mark Clare said: "The stabilisation of the housing market which we saw over the beginning of 2009 has continued and London remains the strongest part of the country."

"But I am afraid we are still taking a cautious stance at this stage because further recovery will not come until see an improvement in the availability of mortgage finance," he added.

Barratt said private reservations in the 19 weeks to 8 November were 34% higher than in the same period last year when the market collapsed following the collapse of Lehman Brothers.

Clare said the firm's £160 million Dalston Square scheme in Hackney "is selling extremely well" with 232 homes sold since the launch in May last year. Only 12 are left.

At St Andrews in Bow, 63 of the 98 private homes available have sold since the development launched in June this year.