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Builder sees post-spending review reservations beat expectations
08/12/10
Edited by Andy Jowett.House builder Bellway Homes has seen reservations for residential property exceed board expectations since the government's comprehensive spending review (CSR).
In an interim management statement covering 1st August to 30th November, the company said buyers were cautious ahead of the CSR and, as a result, sales did not receive their usual autumn boost.
However, the decline in consumer confidence appears to have "levelled out" once the government announced its spending plans for the next four years.
Bellway noted it is encouraging to see people are "still committing to purchase even at this time of year".
It predicted that residential property completions for the six months to January will be broadly in line with the same period of last year.
Meanwhile, pre-tax profits are expected to increase by up to 20 per cent.
The board added that performance in the year to July 2011 will be "greatly dependent" on consumer confidence during the spring, which will itself be affected by the supply of mortgage finance.
Since Bellway Homes was founded in 1946, its builders have completed over 100,000 properties.
