Bellway ‘encouraged’ by growing customer enquiries
House builder Bellway reported ‘encouraging levels’ of consumer enquiries and higher booking volumes as mortgage rates began to settle.
Weekly private reservation rates have increased, though the FTSE 250 company admitted it had been a challenging six months to the end of January.
The number of property completions also plummeted by 28% to 4,092, whilst average selling prices were around £7,600 lower at £309,300.
At the end of January, the group’s forward order book totalled 3,970 homes with a value of just over £1 billion, compared to 5,108 and £1.39bn in the prior year.
It said it had maintained headline pricing while using targeted sales incentives to attract customers and secure reservations.
Despite the subdued results, chief executive Jason Honeyman said the firm “delivered another resilient performance in a period of challenging trading conditions.
“While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints, and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations.”
Shares were trading 0.5% lower at 2796p after the announcement.