ONE of Hampshire's big-name house builders has raised the bar on its annual profits forecast.

Barratt, which has a number of key sites around Southampton, joined rivals in soothing fears over the impact of higher interest rates.

City analysts now expect the UKs largest house builder to report profits of about £360m - £10m higher than previously forecast - after confirming a successful end to its financial year.

Newcastle based Barratt, which completed 14,000 properties in the UK during the year to June 30, added that domestic demand for housing remained sound, with interest rate hikes helping the market to return to more sustainable levels.

The company is currently behind one of Southampton's biggest ambitious apartment projects yet - a luxury block of flats called Oceana Boulevard, pictured right.

It has nearly finished demolishing the former Customs & Excise headquarters by Queens Park and near Dockgate 4.

Rising from the rubble will be the 13-storey Oceana Boulevard, with one, two and three-bedroom apartments costing up to £210,000. Completion is due by the end of 2005.

Barratt also has a slice of the action at the former Pirelli factory in Eastleigh, where more than 500 homes are being built.

In a trading update, Barratt said: "We have produced another record year.

"Forward sales stand at record levels and all planning permissions are in place to achieve a further year of growth."