The housing arm of building firm Wilson Bowden is building 100 houses a week, at an average cost of £204,000, giving profits of £223m on annual sales of £1bn.

The firm’s been improving margins by making a 29% profit on building costs, giving it the firepower to snap up more land as the South East’s housing shortage continues.

So far in 2004, David Wilson Homes has set up a south coast office, so the southern regional office in Hungerford can concentrate on the M4 and M3 corridors.

Chairman David Wilson told investors recently: “Our current trading remains well in line with expectations, and our forward sales position is strong and healthy. This gives us confidence that results for the current year will show further improvement and progress for the group.”

David Wilson Homes is currently building 180 new homes next to Newbury racecourse, and 160 at Deadmans Lane, Greenham. Recent completions include the Wash Water site and executive flats complex on the old Newbury College site.