Housebuilder Bellway reports rise in reservations

Housebuilder Bellway reports rise in reservations

Housebuilder Bellway has reported that it has seen house prices fall by up to 40% from their peak in August 2007.

In presenting its half-year interim results for the six months to the end of January, the firm also revealed that it sold 2,014 homes during the period, down from 3,252 a year earlier.

The average selling price stood at £156,100 although housing associations bought 379 properties (almost 19%) paying an average price of £115,960.

The majority of housing associations sales were made through the group’s southern divisions.

Meanwhile, cancellations are at an historically high level of around 26% and according to Bellway, almost all private reservations made since last summer have involved a variety of incentives including part-exchange and the firm’s shared-equity scheme.

The group’s chairman, Howard Dawe, comments: “A combination of low levels of mortgage lending, high deposit requirements and the caution adopted by most valuers on behalf of lenders has not helped consumer confidence.”

However, he adds that during the first eleven weeks of 2009, visitor and reservation rates have improved.

The company announced a pre-tax loss of £48.6 million for the half year, having written down £58.9 million on the value of its land bank and work in progress.

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