Shares in Bellway PLC (LSE:BWY) rose 2.3% in early deals after the builder reported a strong operational performance and provided a confident assessment of prospects.
However, there was a note of caution in the trading statement as the FTSE 250 group said "rising energy prices, global supply chain constraints and increasing wage costs" continued to provide a drag on performance.
That said, demand for its homes remained strong over the period from February 1 to June 5 at an average of 253 reservations a week (up from 239 in the comparable period last year).
Looking ahead, completions for the year are expected to grow by around 10% to around 11,100 – in line with guidance – though the average price is expected to dip marginally to £305,000.
The order book of £2.4bn is up 27% year on year.
Bellway said it is relying less on the government-backed help-to-buy scheme with 16% of transactions receiving support, down from 39% two years ago.
In the first half-hour of trade, shares in the builder advanced 51p to £22.60.