Housebuilder Bellway sold 300 homes in Scotland, just 36% of the usual level, over the last year as the housing market lagged behind a resurgent South.

The company, which sold well over 800 homes a year north of the border in the previous two years, said it is buying up land and reopening mothballed sites in the south of England.

While it is continuing to build homes in Scotland, it is holding back on opening new sites north of the border until there are signs of a recovery.

Bellway fell to its first ever pre-tax loss of £36.6m in the financial year to July 31, after writing £66.3m off its land bank in January.

But it still plans to pay a 6p final dividend. It made a £34.8m profit in 2008.

Bellway sold 4380 homes across the UK over the period, a decline of 33% on the year before. The average selling price also fell from £169,729 to £154,005 and margins were hit by sweeteners, such as payment of legal fees.

Finance director Alistair Leitch said: “We want to remain a national housebuilder and we will invest in Scotland but at the right time and Scotland needs to be delivering reservations on a week in week out basis to show the market has come back.”

He added: “The South seems to be more robust. If you are looking at the areas that have suffered the most, the North West (of England), Yorkshire and Scotland seem to be struggling.”

But he said he expected Bellway’s Scottish operation to make more sales this year.

“I think north of the border should contribute more than 300 (sales) in this year. That (last year) was quite an exceptional fall. They probably got quite a shock.”

He said there had been a delay in cutting the sales prices of homes after the downturn struck.

A housing association site in Ruchill, Glasgow, where work started last week, is a rare new development for the company north of the border.

As demand from householders weakened, the company has sold more of its stock to housing associations, which accounted for 34% of sales last year.

In much of the country, Bellway reported that visitor numbers and bookings began to pick up from the beginning of 2009.

Things were particularly buoyant in the south of England where its Essex and South East divisions actually increased sales over the year.

Leitch said Bellway had contracted to buy £32m of land and has signed initial agreements, known as heads of terms, on another £90m of land, largely in the south of England. In all this could be used to build 3370 homes.

Stripping out the impact of land bank writedowns, profit before tax was £29.8m, ahead of analysts’ expectations. Interest payments were lower than expected after the group ended the year with debt of just £36.8m, down £180.9m on last year, representing gearing of 3.8%.

Since the year end Bellway has further improved its financial position by raising £43.7m in a share placing.

The company remained cautious on the economic background, noting: “The pace of economic recovery is still uncertain with lack of mortgage availability, especially for first time buyers, potential unemployment and political uncertainty all remaining a threat to consumer confidence.”

Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers said: “Bellway is again underlining its pedigree status. Whilst many rivals remain laden with debt, prudent management going into this crisis has left Bellway much better positioned. Land acquisitions are being eyed, while a dividend payment continues to be paid.”

Bellway’s shares closed down 11.5p or 1.4% at 794p, further below the 52-week high of 927.5p set last month.