Bellway has spring surge in its sales

Would-be housebuyers are shrugging off economic gloom with a spring surge in visits and sales, Bellway boss John Watson said today.

The housebuilder is seeing signs of a "traditional spring market" after fears over the Government's comprehensive spending review last October scuppered the autumn selling season.

The shares jumped more than 3%, or 23p, to 706.5p.

The number of visitors to its sites is up 25% while sales reservations are running at 119 a week, against 80 before Christmas, with the London market leading the way, Bellway added.

The chief executive said: "I'm seeing higher average selling prices and a little bit more volume. The rate of sales definitely becomes stronger the closer you to get to London."

Mortgage availability is still putting the brakes on the market, but Watson also welcomed last week's Budget planning initiatives as a "signal from the Government that they want to build more".

Pre-tax profits for the six months to January 31 rose 26% to £2.2 million.