Housebuilder, Bellway, has stated that it has purchased £120m worth of land during August and September as it emerges from a year of ‘partial hibernation’ after its pre-tax profits slid to £29.8m, an -82% decline on the previous year.

It stated that it is looking to open new outlets ‘selectively’ with the land purchased having the potential for 3,370 new homes. According to the firm, it has reservations of 58% ahead of a year ago with forward orders representing 61% of its current year’s planned output.

However, the company has warned that with the pace of recovery still "uncertain" because of a shortage of mortgage availability and the risk of unemployment, it has been encouraged by signs of firmer house prices.

John Watson chief executive of Bellway, said: "This stability, whilst still fragile, is extremely welcome and, consequently, the group is now looking to selectively increase both work in progress expenditure and the number of outlets."

The company said that as a result of its lower level of borrowing in comparison to its major industry rivals it will be in a stronger position to capitalise on an eventual market recovery.