In its latest trading update it also reported a decline in operating margin as house prices remained under pressure.

"With mortgage providers continuing to require a high level of deposit, particularly for first time buyers, we expect trading conditions during the first half of 2010 to be subdued relative to historic levels," the company said on Friday.

Bellway said its operating margin fell to 6% in the six months to the end of January, compared with 9.2% the year before. For the full year, it said it expected operating margin to be in the 6-7% range.