Housing industry faces difficult months ahead amid weak demand, says Barratt

Housebuilder reports £705m profits but ‘mortgage affordability challenges’ affect purchases

Britain’s biggest housebuilder has warned that things will “continue to be difficult” for the housing industry over the coming months as potential buyers struggle with the rising cost of home loans.

Barratt Developments said “short-term demand has been impacted by mortgage affordability challenges” and it was reducing construction sharply in response, but also reported £705m in annual profits.