Housebuilder says it saw no signs of an improvement in the market in June and July
Housing reservations at Bellway Homes have fallen 45% in the second half of the year. The housebuilder blamed restricted mortgage supply and a lack of consumer confidence for the sharp decline and said the situation had not improved in June and July
In a trading statement it said that completed sales fell 14.2% to 6,556 for the year ended 31 July. Average selling price fell from £173,300 to £169,000 over the same period and Bellway said operating margins were likely to be 3% lower at around 16%.
Bellway said that 20% of completions were to housing associations and it envisaged a higher proportion next year. Total future sales at 31 July were £370m compared to £594m in 2007.
In response to the slowdown Bellway said it had reduced its land bank and had cut overheads by merging divisions. It said it didn’t anticipate any writedowns at this time and said it was operating within its banking facilities.