Housebuilder Barratt Developments said it was on track to boost annual profits by 20%, adding it was "too early" to say how the UK's Brexit vote will affect its business.

The UK's largest homebuilder by volume said it expected pre-tax profit to rise to £680m compared to a year ago, in a trading update to the end of June.

It added that the amount of homes it completed in the period rose by 5.3% to 17,319, as the industry takes advantage of low interest rates, good mortgage availability and government aid schemes such as Help to Buy.

However, Barratt's shares fell almost 7% in early morning trading as investors fear the Brexit vote may lead to a slowdown in the economy that will hit housebuilders hard.

Over the last six months the stock, in common with most housebuilders, has fallen by some 30%.

Barratt Chief executive David Thomas said: "Following the EU referendum, it is too early to say what the impact of the uncertainty facing the UK economy will be.

"The sector continues to receive focused government support, mortgage availability is good and there remains an undersupply of new homes. With a strong balance sheet and forward order book, and industry leading quality and customer service, we remain confident in the positive fundamentals of both the housing sector and our business."

Richard Hunter, head of research at Wilson King Investment Management, added: "The market has chosen to home in on the housebuilding sector as being representative of uncertainty regarding both house prices as well as prospects for the broader UK economy.

"If there is a fly in the investment ointment regarding this update, it is an admission that there has been some increased uncertainty in the higher value London market."

The neighbouring commercial property market has seen several funds suspend trading or cut valuations, as asset managers seek to stem a tide of redemption requests from investors since Britain's vote to leave the European Union. The managers that have taken these measures account for around half of the UK's £25bn commercial property funds market.