Housebuilder Bellway plc’s home reservations are averaging 105 per week, underpinning the group’s performance for the year, it said in an interim management statement.
Bellway has used cash discounting, part exchange and shared equity to achieve the reservation rate, while its level of unsold units has now reduced to 660 from 1,000 at the end of January.
The company’s southern-based divisions have experienced a “marginally stronger market” than other regions and turnover from them will be much higher by the year end than northern-based divisions whose markets still “remain fragile”.
“The summer selling season normally heralds a slowdown in activity, and selling homes in the early stages of construction is difficult, given the current lending environment,” Bellway said.
“Nevertheless, our current order book of reservations for completion after July 31 stands at £228m and, with a further nine weeks of selling to go, the board aims to have 50% of next year’s volume target secured as it enters the new financial year.”
