Bellway aims to increase housing completions by 5% next year, after a rise in pre-tax profit in its end of year results.

The housebuilder sold 7,117 units in 12 months up to 31 July, up from 7,001 the previous year, and says it wants to increase this number to more than 7,500.

鈥淲e've upped volumes slightly and we鈥檙e aiming to be north of 7,500 units鈥� says chief executive John Watson.

Pre-tax profit at Bellway rose 3.2% to 拢221m on a turnover of 拢1.24bn giving it a margin of 18%. Net asset value per share grew to 793p from 689p 鈥� a rise of 15%.

The results were tempered by a warning that although the north-east of England, Scotland and the Thames Gateway were performing well, sales in the rest of the country were 鈥渃hallenging鈥� and the firm was using incentives to close most deals.

Regarding Bellway's progress in the regeneration area of the Thames Gateway, east London, Watson said: 鈥淥ur average selling price there is 拢168,000, so we are developing a low-value product. If we supply the market at that price we find the market is very strong. The first-time buyer is very interested in homes at that kind of price.鈥�

Bellway鈥檚 shares closed 27p lower at 1344p a share.