Bellway saw sales jump 8.2% per cent for the year to July 31 with 5,652 homes sold compared to 5,226 last time.

The increase boosted turnover to £1,110.7m from £1,004.2m while pre-tax profit hit £140.9m from £105.3m as operating margins rose to 13.6%.

Bellway has opened new offices in Manchester and in the Thames Valley to cope with demand.

Chief executive Ted Ayres said: “The investment in these new divisions has increased operational capacity to 7,500 homes and beyond per annum and this, together with the strong order book and growing customer demand, could enable the Group to achieve volume growth of up to 15% in the current financial year.

“The attainment of this target will be subject to market conditions remaining unchanged and construction delivery times being achieved.”

Bellway has yet to be hit by rising construction costs due to fixed contracts which were put in place 12 months ago.

Ayres said: “Strong cost control has contributed to the Group’s performance with construction costs remaining relatively benign throughout the year.

“The vast majority of materials used throughout the Group are centrally procured and our supply chain contracts are fixed in advance for periods of 12 months or more.

“This has enabled the Group to ensure consistent cost and quality control.

“We have encountered some material and subcontractor labour shortages in recent months and as volumes continue to grow in the industry, the Group’s procurement teams will face inevitable cost pressures.

“We will continue to work closely with the existing supplier and subcontractor base to minimise any cost increases.”