New homes in London giving Barratt an autumn bounce

London is spearheading a sales revival for Barratt Developments as new schemes in the capital drive an autumn bounce for the housebuilder.

Barratt is selling around three flats a week at its Renaissance site in Lewisham - six times the national average - and seeing similar levels of demand at its Maple Quays development in Canada Water.

The buoyant sales from newer sites in London's more resilient housing market helped push up overall selling prices to £207,000 in the three months to November. Sales rose 55% in the capital and were up 25.9% overall on last year, when sentiment was hit by the looming Comprehensive Spending Review.

Chief executive Mark Clare warned that a lack of mortgage availability was still hampering the market but said: "The location of our new sites coupled with our highest-quality housing is helping to drive pricing and some recovery in sales rates."

Shares jumped 5% or 4.6p to 94.3p.

Liberum Capital analyst Charlie Campbell said: "The stock market fails to recognise Barratt's overweight South-East position and the strength of operating management."