The company said that pre-tax profits for the year to 30 June came in at £220m ($308m), an increase of more than 23% on the previous year.

Barratt's strong performance reflects surging demand for residential property in the UK, fuelled by high levels of employment and low borrowing costs.

The firm sold a total of 12,250 houses last year at an average price of £139,600, up nearly 10% on the previous year.

Confidence

Barratt chairman Frank Eaton said the firm had turned in its "most successful year to date," and pledged continued growth in the months ahead.

"We are extremely well-placed to build on our proven track record and we have great confidence for the future," he said in a statement.

The company has got off to a strong start in the current financial year, with new sales reservations since 1 July up 10% on the same period last year.

California boom

Mr Eaton added that while UK interest rates may rise in the months ahead, making mortgages more expensive, this would help to make the housing market more sustainable in the long term.

The company also acknowledged that housing demand in the south of England had fallen off to "more normal conditions" after surging strongly between November and April.

Barratt said it was planning to step up its activities in southern California, where housing market conditions are similar to those in the UK.

Barratt shares were up 13p at 430p in lunchtime trade in London.