Housebuilder Barratt Developments has credited the booming house market for a surge in half-year profits.

Newcastle-based Barratt, which builds houses from £60,000 to £3m, said all its regional markets had been buoyant during the second half of 2001.

The demand for home ownership was underpinned by high employment, steady earnings growth, increasing disposable income, low interest rates and a competitive mortgage market.

Barratt sold 5,498 homes during the six months to December - a ten per cent improvement - at an average selling price of £132,200.

The strong demand meant turnover across the group surged 20 per cent to £752.8m while half-year pre-tax profits jumped 23 per cent to £77.6m.

Chairman Frank Eaton said: "The group benefits enormously from our total geographical spread of outlets and from selling to all market sectors.

"All of our regional markets are buoyant and the demand for home ownership continues to be strong."

The group has operations in the US and despite the economic slowdown, profits in the division increased 15 per cent to £2.3m from 140 completions.

Barratt last year changed the mix of land it acquires in the US , giving it a lower average selling price, and Mr Eaton said this had been a "timely change".

In the UK, the group has upped its land stock and now has 37,127 plots while forward sales now stand at £580m.

Mr Eaton said: "Looking ahead, we anticipate improvements in the general economy and the housing market should remain strong through 2002. Modest movement in interest rates will add to this stability."

Shareholders will receive an interim dividend of 4.49p, an eight per cent improvement on the previous year's payout.