The chief of the UK's biggest house building firm has died in a road accident.

Barratt Developments announced the death of its chairman and chief executive, Frank Eaton, on Tuesday morning.

"We are deeply shocked and our thoughts are with Mr Eaton's family," the Newcastle-based company said.

An upcoming board meeting due on 10 October will decide who should take over from Mr Eaton.

Blow to rally

News of the chief executive's death knocked Barratt shares, sending them down 2.5% or 10.25p to 425p.

Mr Eaton, who lived in Solihull and joined the company in 1979, was killed in an accident on the A69 west of Newcastle upon Tyne.

The company said managing director David Pretty would act as temporary chief executive until a decision had been made.

The group had been enjoying a rally in recent weeks after reporting record profits for the year to June.

Barratt profits jumped 23% to �220m, which Mr Eaton described at the time as the company's "most successful year to date".

Significant contribution

The company was formed in 1958 and now has 400 UK developments, 80 inside the M25.

Barratt Developments also has a US division and said last month that it was boosting activity in south California, where the housing market was experiencing a similar boom to that in the UK.

Mr Eaton, aged 52, joined the group 23 years ago and became a member of the board 1988.

He was appointed chief executive in 1991 and chairman in 1997.

Barratt said: "Mr Eaton's contribution to the company was immeasurable and he was widely respected throughout the housebuilding industry."