NORTH-EAST housebuilder Bellway has notched a record profit of £325m - showing there is still little sign of a slowdown in the housing market.

Forward sales at the Newcastle-based group are up 47 per cent, with strong demand across the UK.

This follows a year in which Bellway sold 6,000 homes, lifted margins and took pre-tax profits up 24 per cent to £125.3m.

Its North-East division has also enjoyed increased sales on all its developments, from Lesbury, in Alnwick, to Wynyard, on Teesside, and across a range of property types.

It is also developing a reputation as a developer of city centre apartments with the rapid sell-out of its City Gate development in Newcastle, plus the announcement of its Ochre Yard development on the south bank of the Tyne.

Barry Miller, managing director of Bellway NE, said: "We've had an excellent year, especially in design and build terms. The figures emphasise the current strength of the housing market."

Shares rose three per cent as Bellway reflected its confidence by increasing the total dividend payout for shareholders by 11 per cent to 15.75p.

Chairman Howard Dawe said: "We have had our most successful year ever. I am extremely optimistic about the future prospects for the group."

Bellway said turnover increased £77.3m to £773m in the 12 months to July 31, with average UK selling prices nudging up to £120,800.

Pre-tax profits hit £125.3m compared with £101.5m in the same period a year ago as operating margins improved 1.8 per cent to 17.2 per cent.

Bellway's land bank now consists of 17,400 plots with planning permission and 12,500 plots where planning permission is soon expected.