A HOUSEBUILDER says it will continue taking advantage of static interest rates after the strengthening property market delivered record sales.

Bellway sold 7,752 properties in the year to July 31, which included 3,696 in the North of England.

The firm, which operates out of its Newcastle head office, said the successes lifted pre-tax profits 44 per cent to £354.2m, with revenues 18.9 per cent better off at 1.7bn.

Bosses are now targeting another ten per cent growth, saying stationary interest rates, affordable houses and mortgage firms’ battles to offer better deals, will propel that goal.

Ted Ayres, chief executive, said: “The housing market remains strong, supported by an improvement in the availability of mortgage products.

“Customer confidence is robust and, together with a national requirement for new homes, is supporting high demand.

“While it is inevitable interest rates will rise at some point in the future, new houses remain affordable and the lending institutions continue to adopt a responsible approach towards mortgage applications.”

Bellway has a number of developments in the region, including homes in Stockton, Middlesbrough, and Guisborough, east Cleveland, and Mr Ayres revealed it has spent £620m on land to increase its bank to 36,211 plots.

He said: “We have invested significantly in new sites to help satisfy the strong sales demand.

“The quality of the land bank is vital to the future success of the business and our ability to deliver volume growth at attractive rates of return.”

According to its results, operating profits were 41 per cent higher at £360.4m, with gross profits 35.6 per cent better off at £427.9m.

Chairman John Watson added: “We have produced another outstanding set of results, completed a record number of new homes, and made a record investment in land.

“We are well positioned to continue delivering growth and investing in high quality locations.

“The outlook remains positive and the strength of the forward order book should enable us to achieve volume growth of up to ten per cent in the current financial year.”