HOUSEBUILDER Barratt Developments has said its selling prices rose in the final half of 2010 but activity was hampered during a difficult December.

The Newcastle-based company grew its half-year average selling prices by around 6% to £176,000 as it benefited from a change in the mix of sales towards houses, although growth eased from the 9% reported in November.

Last month’s freezing weather held back completions as buyers were unable to visit sites, while it said some build projects could not be finished.

However, underlying prices remained stable in the second half of 2010, after lender Halifax said prices dropped 1.3% during December, taking the 2010 decline to 3.4%.

Barratt, which is the UK’s largest housebuilder by volume, said 2011 was likely to see sales volumes remain under pressure as the availability of mortgage finance continued to drag on activity.

It added: “We expect changes in mix to continue to drive increases in average selling prices, but at a slower rate during the second half of full year 2010/11.”

Barratt completed 4,832 sales in the six months to December 31, down 4.4% on a year earlier, with buyer caution seeing more cancellations and fewer reservations per site.

Efforts to achieve best value from sales has been helping drive profit margins despite tough conditions.

Margins are expected to increase by around 5% in the half-year, up from 2.4% a year earlier.