UPDATE 2-Housebuilder Barratt reports 590 mln stg loss

* H1 pretax loss 592 mln stg after exceptional costs

* Operating within banking covenants, no rights issue plans

* Announces further 700 job cuts

* Says very little forward visibility in UK housing market * Shares up as much as 9 percent

(Adds CEO comment, share price)

By Lorraine Turner

LONDON, Feb 25 (Reuters) - British housebuilder Barratt Developments (BDEV.L) reported heavy losses after writing down the value of its land on Wednesday while its bombed-out shares rallied on relief the result wasn't even worse.

Barratt reported a pretax loss of 592.4 million pounds after exceptional costs in the six months to end-December, compared with a 194.6 million pound profit in the same period last year. The result included a writedown of 494 million pounds.

"The focus is on the scale of the land writedowns, 494 million pounds ($719.5 million), its probably within people's estimates," said Kate Moy, analyst at Arbuthnot Securities.