NORTH-EAST housebuilder Barratt Developments said the slowdown in house prices was continuing - despite it forecasting its 13th record half-year of profits in a row.

Barratt said the market had continued its adjustment to more modest prices and a normal level of activity in the six months to December 31.

The group said it completed eight per cent fewer private sales during the period with an average selling price of about £179,000, up six per cent, although completions of social housing sales more than doubled to 1,256 homes at an average selling price of £105,800, up 18 per cent.

Barratt said it expected to confirm another successful period with further growth in completions, margins and pre-tax profit.

It said its forward sales at December 31 increased to about £800m against £757m last time, a record representing 80 per cent of its full year target.

Barratt, of Newcastle, said the move to moderate house price rises and a more normal level of activity was welcome as it would provide a more stable and sustainable market.

It said the fundamentals of the market remained sound, with low interest rates, good employment levels and restricted supply due to planning delays.