HOUSEBUILDER Bellway has said its market is strongest in Scotland, as the company posted soaring annual profits.

The group posted a 102.4 per cent jump in pre-tax profits to £479 million for the year to July 31 as revenues surged 40.3% to £3.12 billion with the property market maintaining buoyancy.

On an underlying basis, profits rose 71.6% to £530.8m.

The Newcastle-based builder said: “The pricing environment remains positive, with low-to-mid-single digit house price inflation benefitting sites where demand is particularly strong.

“This is most pronounced in Scotland and regions such as the north west, the Midlands and the Home Counties, with customers’ evolving working routines providing opportunities to live further away from traditional centres of commerce.

“In general, and across the group, house price inflation has offset rises in build costs.”

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However, Bellway flagged the impact of ongoing supply chain disruption, which is pushing up prices of materials such as steel and timber.

The lorry driver crisis and the recent fuel issues are also continuing to affect the availability of materials, while the company is also battling wider labour shortages.

READ MORE: Housebuilder Bellway's record new sites investment

It cheered a “substantial” order book of £1.97bn, up from £1.87bn the previous year, and is targeting the sale of more than 11,100 homes in the new financial year, though it said completions will be weighted towards the second half. Completions rose 34.8% to 10,138 over the year to July.

Bellway added: “The market is strongest for good quality, affordably priced homes in desirable locations, with our Scotland, Manchester, Yorkshire and East Midlands divisions all enjoying a particularly strong performance in the north of the country, a reflection of the favourable market conditions and our land investment over recent years.” Shares in Bellway closed up 1.6%, or 53p, at 3,405p.