Bellway detects rise in housebuying interest
Housebuilder Bellway has reported 'encouraging' numbers of site visits and subsequent sales since the harsh winter weather subsided at the turn of the year.
Housing trend: Bellway is changing its focus away from apartments towards traditional two-storey homes
But it said four weeks was too short a period to consider revising its full-year forecast, and it wouldn't be drawn on the strength of the spring selling season yet.
The group revealed that completed sales were up 3.8% to 2,332 in the half-year to the end of January.
The average selling price was up by around 8% to £168,000.
'This increase, whilst aided by greater price stability during 2010, is primarily a result of the change in product mix. Bellway continues to change its focus away from apartments towards more traditional two-storey homes,' it said
The firm added that profit margins were benefiting as sales from cheaper recent land deals kicked in.
It currently has an order book of £402m, up from £390m a year ago. This represents 2,343 homes, on which 1,847 deals are expected to be completed by the end of July.
Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said Bellway was seen as a 'likely winner' despite general market nerves over the impact of austerity cuts on the sector.
He said: 'The group's more prudent management coming in to this downturn has shielded it from the worst of the crisis, with the company now reaping the benefits over rivals, acquiring land at discounted levels and potentially cementing future profitability.'
Bellway's shares rose 16.5p to 656p in trading today.
It was formed in 1946 and now employs around 1,400 people in the UK.
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