Bellway Homes’ sales halved since July

Bellway Homes is the latest housing developer to report a sharp fall in sales.

The group, which is the UK’s fourth-largest housebuilder, has sold 6,556 homes over the past year, down from 7,638 in the previous twelve months.

The average price of a property dropped to £169,700, down from £173,300 a year earlier.

The firm’s finance director, Alistair Leitch, explains that the market had declined rapidly since July and weekly sales are now averaging only 50 properties, around half the level seen a year ago.

Like many of its competitors, Bellway is offering substantial incentives to potential customers, including help with fees, part exchanges, and a 25% discount on the cost of a property, until the homebuyer remortgages, or moves.

With sales still falling, Mr Leitch is calling for Government help to kick-start the market and suggests that allowing people to invest their self-invested personal pension funds (SIPPS) in residential property would help.

When SIPPS were introduced in 1989, residential property was excluded as an investment choice for fear that pension funds moving in the housing market would inflate prices.

Mr Leitch is also keen to see a rise in the budgets of social housing providers, although Bellway is mainly a private sector provider.

The group posted pre-tax profit £34.8 million for the 2007/08 financial year, down from £234.8 million in 2006/07.

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