UK housebuilder Barratt Developments has seen profits slump 13% in the past year.

Barratt made a pre-tax profit before exceptional items of £137.3m in the year to the end of June.

The group also wrote off £208.4 million from its £3.3 billion land bank to reflect the poor state of the property market.

The builder's average selling price for a home in the 12 months to June 30 fell 6% to £183,100.

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However, the building company is prepared to pay up to £15,000 of stamp duty for buyers, as well as offering a part-exchange plan and a three year guarantee 'price promise' which would protect buyers from a drop in the sale of their home.

Mark Clare, Group Chief Executive of Barratt Developments commented: "Whilst we have produced a satisfactory set of results in an extremely challenging market, there is little prospect for any material improvement in trading conditions until mortgage finance and customer confidence return. In the meantime, we have successfully refinanced our business. Our focus today and looking forward is to maximise sales revenues, reduce costs and generate cash to reduce debt."

(CD/JM)