UK housebuilder Bellway says its southern divisions are seeing a 'marginally stronger' housing market in the south of the country and sales there expected to be 'much higher' by the end of the year than in the North.

Bellway said markets in the Midlands, Yorkshire and North West England remain 'fragile'.
The firm warned of high cancellation rates as many prospective buyers failed to get mortgages and lenders' valuations were 'inconsistent'.

Bellway said: 'The summer selling season normally heralds a slow down in activity and selling homes in the early stages of construction is difficult, given the current lending environment.'