Housebuilder Bellway reports shift in southern markets

Bellway has reported that since its interim results were released at the end of March, there has been no major change in demand for new homes.

The Newcastle-based housebuilder says first-time buyers are continuing to “struggle” to raise deposits, making access to the first step on the housing ladder “difficult”.

However, conditions vary from region to region, with the company’s southern divisions reporting a marginally stronger market.

Bellway therefore expects turnover for these divisions to be “much higher” than for its operations in the north.

Markets in the Midlands, Yorkshire and North West of England are still particularly fragile.

In addition, cancellations remain at historically high levels, with lenders’ valuation policies continuing to show inconsistencies.

More positively, net reservations since 1st February have averaged 105 per week and the company’s target of 4,200 sales during 2009 should be achieved with the help of incentives, such as cash discounting, part exchange and shared equity.

The group’s level of completed stock units has now fallen from 1,000 at the end of January to 660 at 31st May and Bellway has instructed its land teams to begin acquiring sites for traditional two storey housing.

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