Barratt Developments said it continued to trade 'satisfactorily' in the first half, with prices holding up and costs reduced.

Updating the market on trading to the end of December, the housebuilder said average selling prices decreased by 0.9% to £177,900. This means a first-half operating margin 'well within' the range of previous guidance.

Barratt highlighted its forward order book of £1.26 billion, compared to £1.34 billion last time, and that it has 69% of full year sales already secured, albeit down from 74% last year.

The company said it is still too early to know the outcome of the historically strong spring selling period but highlighted this year's more favourable interest rate environment. It also points to its increased number of outlets and 'encouraging' order book.

Shares rose 7.5%, or 27p in early trade to 390 pence.