Bellway building up profits as confidence returns to the property market
Housebuilder Bellway reckons profits will be up 20pc in the first half of the year as confidence returns to the property market and 'doom and gloom' over spending cuts lifts.
Shares in the company jumped nearly 10pc after it said business has picked up since Chancellor George Osborne outlined tough austerity measures in October.
Bouncing back: George Osborne's austerity measures saw Bellway shares jump
Bellway (up 54.5p to 612.5p) sold 78 homes per week in the two months before the spending review, but has sold 91 a week since.
That is far better than the 60 finance director Alistair Leitch expected when the deficit-busting measures were announced.
'The doom and gloom that was around before the spending review has lifted and people have decided to get on with their lives,' he said.
'House buying is about whether your job is secure and following the spending review confidence is no longer falling.'
Bellway is now looking for profits for the six months to the end of January to be a fifth higher than the £19m it made in the same period last year.
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