Profit Hopes for Housebuilder As Buyer Confidence Returns

Summary

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HOUSEBUILDER Bellway said it expects a 20 per cent hike in interim profits as buyer confidence returned to the market following the government spending review. The Newcastle-based company said home reservations had increased since the announcement, although it confirmed they were still lower than a year ago. Bellway previously said it had not seen the traditional autumn uplift as buyers delayed purchases until George Osborne announced his cuts on October 20. But it said the decline in consumer confidence had now levelled out and added it was encouraged by people buying homes at a time that is normally slow for the housing market.

The number of sales secured for this financial year is four per cent higher and the company expects the number of properties it sells in the six months to January 31 to be the same as last year. With first-time buyers struggling to get onto the property ladder, the company has moved into selling more expensive homes - its average sale price has increased eight per cent to Pounds 167,600. The company said pre-tax profits could lift to Pounds 22.8 million in the first half, although it stressed the full-year result depends on the key spring trading period. Shares in Bellway leapt seven per cent following the announcement.

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Profit Hopes for Housebuilder As Buyer Confidence Returns

The positive news from Bellway comes a week aft...

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