The biggest house builder in the UK, Barratt Developments, witnessed a dramatic decline in earnings last year as a result of building far fewer homes.

It finished just 14,000 in the year ending in June, down from 17,000 in the year prior, and it predicts that the total will be much lower the following year.

Barratt attributed the year's three-quarter decline in pre-tax earnings to both inflation-driven expenses and high loan rates deterring homebuyers.

Regarding the incoming Labour government's promise to "get Britain building", the completion numbers are problematic.

David Thomas, the company's CEO, stated that it was "well-positioned to meet the strong underlying demand for new homes".

However, according to the company's prediction, it will only complete between 13,000 and 13,500 additional homes in 2025.

The government has committed to building 1.5 million additional houses in England over the next five years, indicating that expanding the housing stock is a top priority.

It has pledged to re-establish mandated housing objectives for local authorities, release portions of the green belt, and overhaul the planning process.

Barratt's findings highlight the degree to which mortgage rates influence the amount of construction decisions, despite the government's optimism that reforms to planning laws will boost housebuilding.

Redrow, a competing builder, is being acquired by Barratt; however, the acquisition is still pending competition regulator approval.

(Sources: bbc.co.uk)