LONDON (AP) — Barratt Developments PLC, Britain's second-biggest house builder by volume, yesterday reported a half-year loss of more than £400 million as it took a massive hit on the value of its land and work in progress amid a depressed property market.

The company said it detected faint signs of improving business, but expected no real recovery until mortgage lending returns to normal.

Barratt reported a loss of £424.3 million ($618.5 million) in the six months ending December 31, its fiscal first half, compared to a profit of £133.8 million in the comparable period a year earlier.

Revenue fell 14 percent to 1.26 billion, and the company wrote off £494.9 million on the value of it inventory of land and work in progress.

Barratt shares were up 3.5 percent at 74 pence on the London Stock Exchange.

"Although the news is bad, expectations were already extremely low. The write-down in value of the group's land bank is broadly in line with forecasts, whilst the degree of cash generation and subsequent reduction in group debt is mildly pleasing," said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers.

While "the screaming concerns over the company's immediate future appear to have subsided", Bowman added, market opinion of the company is likely to remain negative.

Barratt said it had completed 6,905 housing units in the first half, down 24 percent on the previous year, and the average selling price fell by 9.7 percent. In the last six weeks, the company said it was averaging a sale every other week at each site, up 20 percent from mid-2008.

"We've reduced our prices and we're now seeing some signs of increased activity levels in terms of visitor numbers and sales." said Group chief executive Mark Clare.

"However, there will be no recovery in the housing market until the availability of mortgage finance improves. So, we are continuing to offer customers every possible assistance to move house, ranging from shared equity products to part exchange on their current home."