NORTH East housebuilder Bellway continued to defy the gloom in the property market yesterday as it declared interest from potential buyers was proving “remarkably resilient”.

Newcastle-based Bellway said in an update yesterday reservations were up 14% on a year earlier and admitted the upturn had taken it by surprise.

Finance director Alistair Leitch said: “The second nine weeks have been stronger than the first nine weeks, which is unusual ... it’s remarkably resilient.

“I can only think people are thinking they’re not going to take a blind bit of notice (of the eurozone debt crisis) ... It’s a needs market.”

Visitor levels have held up well despite the ongoing crisis in financial markets and Bellway said the average selling price achieved on reservations between August and November was up by 7%, helped by a shift towards more traditional family homes.

It said it was continuing to use incentive schemes to drive sales, but the use of shared equity had reduced to less than 5% of transactions compared with around 10% last year.

In contrast, it said the part exchange of customers’ existing homes was being used in an increasing number of transactions. Shares in the company rose as Bellway offered more good news for investors by announcing a £150m lending facility with Lloyds Banking Group.

Bellway noted the Government’s efforts to stimulate the housing market, particularly higher loan-to-value mortgage lending, but admitted its results for the year to July were more likely to hinge on consumer confidence.

“While the group welcomes such initiatives, the outcome for the full year will be dependent primarily upon consumer confidence, especially during the spring selling season,” the company said.

Numis Securities expects pre-tax profits of £89.5m, compared with £67.2m a year earlier.

Analyst Chris Millington said: “Whilst we have left estimates unchanged at this early stage in the year – wanting to wait and see evidence of the spring selling season – the risk to estimates remains on the upside.”

Richard Curr, head of dealing at Prime Markets, said: “One could be forgiven for thinking that the recession has passed by the housebuilding industry all together this year, such is the pace of growth as illustrated by current and future reservations, and the level of investment going into land purchases for new developments.”