Housebuilder Bellway says recent falls in mortgage rates have helped trading in recent weeks after its reservation rate fell by more than 30%.
The North East-based developer reported results for the six months to the end of January 31, in which it said trading had picked up in the early part of this year following the impact of higher mortgage rates and the end of Help to Buy last autumn, which had caused a 43.8% fall in the number of private reservations. Against a strong comparator period the year before, Bellway built revenues by 1.6% to £1.8bn with underlying operating profits falling 4.4% to £317.7m.
Despite headwinds identified as the end of Help to Buy, affordability worries for buyers and delays in the planning system, and a lower order book of £1.6bn vs £2.2bn, the firm launched a £100m share buyback. Bellway said funds were available partly because it had not yet made use of a 100,000-plot land bank meaning it did not need to spend in the land market.
