Barratt Developments PLC (LON:BDEV) said profits for the year to end June 2021 will be above the top end of its expectations due to the strength of the housing market and rising prices.
Sales reservation rates have risen to 0.78 compared to 0.70 two years ago, while forward sales for the current year are worth £3.47bn or the equivalent of 14,334 homes.
Completions in the year just ended were 17,243 up from a Coronavirus (COVID-19) affected 12,604 a year ago and 17,856 in 2019.
House prices over the year rose 3.2% to an average of £289,000, though Barratt said this is now being matched by raw material and build inflation, which has risen from 2% during 2021 to between 3-4%.
David Thomas, chief executive, said: “Whilst these are still uncertain times, we enter the new financial year in a strong position and remain focussed on our medium-term targets, including delivering 20,000 homes a year."
Net cash at the year-end was around £1.2bn, which was also ahead of guidance said the FTSE 100 group due to land sale timing and additional house sales.