Bellway still notes lack of mortgages

The group said the availability of higher loan-to-value mortgages "remained restricted" despite the recent launch of the Government-backed NewBuy scheme to encourage lending on newly built homes.

The UK's fourth biggest housebuilder said the scheme is unlikely to have a significant impact on the number of completions in the current financial year, but hopes it will help support sales in its next year, starting in August.

The warning came as it revealed that pre-tax profits rose 69 per cent to £40.6m in the six months to January 31 as it focussed on building traditional homes because flats are more exposed to first-time buyers who are struggling to get on the property ladder.

The group made a good start to the spring season after further increases in reservation rates in the past six weeks.

The NewBuy scheme is forecast to help as many as 100,000 people locked out of the property market by heralding the return of 5 per cent deposits.