There was more good news for the housing market this morning after housebuilder Barratt Developments said homebuyers were returning and trading conditions had improved.

Delivering an upbeat report, the group said its private reservations per site had risen by a third as the more positive mood surrounding the UK property market continued through the second half of the year.

The group's chief executive, Mark Clare, said trading conditions had 'improved' in the three months to November and prices had risen, although he warned there was still an issue with the availability of mortgage finance.

He said: 'While trading conditions in the housing market have improved, activity levels will remain constrained until the availability of mortgage finance increases, particularly at higher loan to value levels.'

The positive comments follow a similar update from peer Persimmon yesterday. Its chief executive Mike Farley said the market was 'encouraging' with buyers returning and prices stabilising.

Elsewhere in the statement, Barratt said its recent £720 million rights issue had allowed it to significantly reduce its debt and the group expects debt at the end of the year to be £700 million, down from £1.4 billion 12 months earlier.

Shares in the group dipped slightly in early trading, down 0.2p to 145.8p, by 08:50am.