Housebuilder Bellway has reported a 3.9% fall in its first half pre-tax profit due to challenging conditions.

The company said volume growth is not likely to be extended this year, adding that the current housing market is tough, mainly because of a change in consumer confidence. Shares fell 2%, or 16.5 pence in early trade to 793.5p.

For the half year ended 31 January, the company said pre-tax profit was £96.9 million, compared with £100.8 million a year earlier. Revenue rose to £581.5 million from £576.5 million.