Bellway's sales up on improving consumer confidence

Published 10th Jun 2011

Homebuilder Bellway said improving consumer confidence had helped deliver a 9 percent increase in sales between February and May, and added that current market conditions left it well placed for growth.

One of the smaller listed housebuilders, Bellway on Friday said the sales recovery seen during the Spring selling season continued into May after what had been a challenging end to 2010.

The group reported a sales rate of 111 units per week, up 9 percent on the same period last year, with the average selling price rising by 4 percent to 182,000 pounds.

Bellway, which attributed the upturn to a better product mix and more expensive units around London, said another 1,600 reservations had been taken for completion in 2011/12.

"Constraints in relation to mortgage supply, particularly regarding first time buyers, combined with wider economic concerns, continue to pose challenges to the sector," a statement read.

"Nevertheless... the board believes that Bellway is well positioned to continue delivering both operating margin and volume growth if market conditions remain unchanged."

Last week it emerged housebuilders are in talks with British banks to find ways of helping buyers overcome tight lending conditions, which have caused market gridlock.

In a further boost to the industry, the government said on Wednesday that it would sell off public land to developers and housebuilders worth an estimated 10 billion pounds to help tackle a growing housing shortage.

Newcastle-based Bellway said its net debt had risen to 57 million pounds in the period having spent 220 million pounds on land and land creditors in 2011, but added that it expected this level of gearing to reduce by the end of the year.

Source: ' Reuters '

View All Latest News