FTSE 250 housebuilder Bellway yesterday said it is on track to meet its guidance for the full year despite sales remaining well below last year.

From the beginning of February to 4 June, the reservation rate averaged 190 homes per week compared to 253 in the same period last year, a fall of nearly a quarter.

However, the Newcastleheadquartered property developer said it had seen a "sustained improvement" in sales compared to the final quarter of 2022.

Bellway noted there was a weekon-week improvement in private reservations during January and February and that those have since been maintained throughout an "encouraging spring selling season".

Pricing had "remained firm across our regions" although it had used "targeted incentives" in some areas to attract customers, Bellway said.

This meant that despite the fall on last year, Bellway said it remained on track to complete around 11,000 homes with an overall selling price of around £300,000 when its year ends at the end of July. Last year, Bellway managed 11,198 homes at an average value of £314,399. However, into 2024 Bellway expects lower sales year-on-year as a result of the uncertain interest rate environment.

Bellway's order book stands at £1.7bn, nearly 6,200 homes, compared to £2.4bn last year and Bellway said it anticipates a further decrease by the end of July.

"While customer interest is currently healthy, the board remains mindful that cost of living pressures and the uncertain path of future interest rates could impact housing demand," chief executive Jason Honeyman said.

Investors took note, with shares closing down 3.49 per cent.

(c) 2023 City A.M., source Newspaper