Housebuilder Bellway said it had yet to see any sign of a slowdown in the housing market as it forecast a "good set" of results this year.

But the Newcastle-based group conceded its switch away from the expensive central London market two years ago seemed "well timed".

Just three months after posting record annual profits the group said low interest rates were continuing to drive demand for new homes.

Chief executive John Watson said: "There's no change in the market as far as we are concerned. It's reported in the press but we have no evidence of it."

Bellway operates in 14 regions across the UK and said it was well placed to cope if the downturn in areas of London goes elsewhere.

The group reported annual pre-tax profits for the year to July 31 of £125.3 million, up 24 per cent, and said forward orders were at £325 million.