SUSTAINED demand and new measures to counter cost increases and a skills shortage have pushed a housebuilder to record sales and profits.

Bellway says buyers’ unwavering desire to climb the property ladder has helped smash previous financial highs and laid a platform for further growth.

Bosses also dismissed concerns over a property market slowdown amid Brexit uncertainty and a squeeze on household finances, saying they expect sales to grow by at least five per cent in the coming 12 months as the Help to Buy programme continues to leverage interest into deals.

The business, which has offices in Darlington and Gateshead, saw pre-tax profit rise 12.6 per cent to £560.7m in the year to July 31, with sales lifting 10.6 per cent to an all-time high of 9,644.

The results, revealed today (Tuesday, October 17), added operating profit was up 16.2 per cent to £571.6m, with revenue climbing 14.2 per cent on a year ago to £2.5bn.

Jason Honeyman, chief operating officer at the Newcastle-headquartered group, said it was wellpositioned to continue its financial successes, citing a rise in reservations and the impact of its Darlington office, which opened last year.

He said: “Demand for new housing remained strong across the country.

“The Government’s Help to Buy scheme continued to be an important selling tool, used widely across the group in 35 per cent of completions, while the pricing environment remained positive.

“The Northern divisions increased output by 11.2 per cent to 4,655 homes and growth is also being achieved from our newer, fledgling divisions, such as the one located in County Durham.”

Mr Honeyman revealed average prices increased three per cent to a little over £260,000 in the past year, adding he expects the figure to surge to £280,000 in the current financial year.

He also thanked a “favourable”

planning environment and an “attractive”

land market, which had allowed Bellway to bolster its forward order book by 17.4 per cent to £1.4bn as of October 1, with 5,034 homes reserved.

He said: “This strong forward sales position, together with investment in land and work in progress and plans to open a new trading division in the North this financial year, should enable us to deliver further growth in volume in the year ahead.”

However, Mr Honeyman highlighted some areas of concern for the business, which has developments in Stockton, Middlesbrough, Redcar and Guisborough, east Cleveland, saying a lack of workers and cost pressures remain present.

He added: “Growth in output in the wider construction sector and the wider industry skills shortage continued to place upward pressure on sub-contractor costs, particularly for trades such as bricklayers and scaffolders.

“The availability of materials is generally good, however, and the group is deploying a number of initiatives to counter the effect of cost increases and subcontract and supply chain constraints.

“These include reviewing schedules, lead-in times and build progress, and a greater degree of product standardisation should result in future cost savings.”