PROPERTY developer Bellway said profit before tax fell by 18.1 per cent to £532.6m, as the company continues to be impacted by tough mortgage rates which have affected buyer demand.

The FTSE 250 housebuilder said revenues also dipped 3.7 per cent to £3.4bn and housing completion fell 2.3 per cent to 10,954 new builds in the term.

As a result of the unruly buyer market Bellway said it expects the average selling price of a home in the next financial year to be around £295,000 down from £310,000 in 2023.

The company also said it was targeting the completion of around 7,500 homes down and plans to end the year with a "higher order book".

Bellway noted that it was continuing to trade in line with company expectations.

Jason Honeyman, group CEO, said:"Bellway has delivered a resilient performance against a backdrop of rising mortgage interest rates and challenging market conditions."

He added: "The depth of our land bank and robust balance sheet provide ongoing strategic flexibility and scope for outlet growth in the year ahead."

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