Housebuilder Bellway today said it was enjoying a "spring bounce" - but warned it was too early to talk of a sustained recovery in the housing market.

Chief executive John Watson said sales have picked up since Christmas after a "dire" start to the financial year, which began in August.

But he warned the improvement could be short-lived as unemployment soars and mortgage lending remains tight.

His caution came despite figures yesterday showing that mortgage approvals jumped 19% in February to a nine-month high of almost 38,000 - albeit from a very low level.

"Since Christmas, there has been a big pick-up for us," said Watson. "The sales rate has virtually doubled compared with the sales rate prior to Christmas. It is encouraging, but we are still giving away discounts on every deal.

"I'm sure America has had about three similar periods of sales picking up only to see them dive away. And sales always pick up in the spring.

"It is a spring bounce. The question is how long it will continue, will it be sustained? I don't know, but I can't see it really improving until mortgage liquidity improves, and there are also the dark clouds of unemployment. There is a long way to go."

Bellway reported losses of £48.6 million for the six months to 31 January against profits of £96.9 million a year earlier.

Bellway was hit by charges of £66.3 million from writedowns to the value of its land, and slashed its dividend by 83% from 18.1p to 3p. The shares today rose 22½p to 671p, having peaked at 1690p two years ago.

Average selling prices were down almost 11% or £18,700 from £174,800 in the first half last year to £156,100 this time around as Bellway cut prices to tempt buyers. A quarter of deals struck in the six-month period were then cancelled.

Watson said that business in the South of England was more robust than in the North.