Housebuilder Bellway says it has seen demand drop on the back of higher mortgage rates, though the firm insists there are signs of improvement.
The North East developer gave a trading update for the period between February and June in which reservations averaged 190 per week, compared with 253 in the same period of 2022, and its cancellation rate increased to 15% from 12%. Investors were told the firm was working with a significantly smaller order book of £1.7bn, down from £2.4bn - with further reductions likely this year.
The numbers are set against higher mortgage rates though customers were said to be adapting to higher borrowing thanks to wage rises. Bellway said that while overall mortgage availability has improved in recent months, fluctuations to prices provoked by changing interest rates was affecting shorter-term availability.
