A HOUSEBUILDER expects to smash the 10,000-home sales barrier for the first time as enduring demand creates fertile ground for growth.

Bellway says it is on track to meet the annual target after falling unemployment complemented lower interest rates and Government Help to Buy support.

The Newcastle-headquartered business expects the favourable landscape to help it make history, by selling in excess of 10,000 homes across its financial year for the first time.

Bosses revealed their ambitions today (Tuesday, March 20), upon unveiling the company’s half-year results to January 31, which showed pre-tax profit was up 16.6 per cent to £288.7m as sales ticked six per cent higher to 4,741.

Operating profit was also bright, climbing 16.5 per cent to £294.2m on the back of a near eight per cent average selling price increase to £275,945.

John Watson, executive chairman, said such progress has enabled the business, which has offices in Darlington and Gateshead, to strengthen its land bank, with 6,726 plots, compared to 6,287 this time last year, on its books.

Hailing a resilient sector, and reiterating its 10,000-home target, Mr Watson said: “This has been another excellent six-month trading period in a market place in which demand is robust and mortgage availability remains good.

“Unemployment is at a generational low and buying a new home is affordable for many.

“This is supported by low interest rates, which are likely to remain below historical norms for the foreseeable future, and a responsible and sustainable lending environment.

“In addition, Government initiatives, such as the continued availability of Help to Buy and the introduction of stamp duty land tax relief for the majority of first time buyers, are helping customers to meet deposit requirements.

“Our strong sales position is likely to be maintained in the second half of the year and, subject to the outcome of the spring selling season, this should enable us to complete the sale of around an additional 600 homes for the year ending July 31.

“In doing so, this should help the company break through the 10,000-homes barrier for the first time in its history.”

Mr Watson added the firm, which employs around 2,000 people across the UK, saw its operating margin improve to 22.2 per cent in the six-month period, with its forward order book up nearly eight per cent to £1.5bn.

He also shrugged off Brexit, saying customer confidence was “seemingly unaffected by the ongoing uncertainty surrounding the forthcoming exit from the EU”.

Bellway has developments in Hurworth, near Darlington, Stockton and Middlesbrough, with a further estate planned for the outskirts of Durham City.