Demand for Bellway's new homes has fallen sharply as would-be buyers were deterred by economic uncertainty, higher mortgage rates and an end to the Help to Buy scheme.
The developer issued a half-year trading update to investors in which it said a shortage of affordably priced, higher loan-to-value mortgages had impacted its reservations, which fell 31.7% to 138 per week. Amid the downbeat market report, the North East-based housebuilder said its reservation rate had improved week-on-week from its weakest point in the final part of 2022 - where rates were down 60% - reflecting what it said was a seasonal pick-up and some easing of affordability pressures.
Ahead of the key spring selling season, investors were told the firm was encouraged by visitor numbers at its sites and its website traffic throughout January. This came as the average selling price of a Bellway home rose by 1.6% to £316,900, though the developer said it had used targeted incentives to secure reservations in some instances.
