LONDON (ShareCast) - (Sharecast News) - Shares in Bellway fell sharply on Tuesday despite the UK housebuilder reporting strong growth for the first half and reiterating its full-year guidance, as the firm highlighted the "sensitivity of customer demand" amid a rise in mortgage rates over recent months
Bellway said total housing completions were 4,577 homes in the six months to 31 January, up 11.9% on last year, with the average selling price rising to £310,600 from £309,278. Housing revenues increased by 12% to £1.42bn.

However, the builder said it did not experience the typical seasonal step-up in reservations during the autumn, though reservation rates for the half as a whole were up 14.3% at 160 per week.

The builder said it was on track to deliver volume output of at least 8,500 homes over the 12 months to 31 July, up from 7,654 homes last year, with output weighted towards the first half.

Looking ahead, Bellway said the forward order book stood at 4,726 homes by 31 January, up from 3,970 at the time point last year, with a vale of £1.131bn, up from £1.01bn.

"While we have been encouraged by a seasonal pick-up in customer enquiries and reservation rates in the early weeks of the current spring selling season, we remain mindful of the sensitivity of customer demand to mortgage affordability and the evolving economic backdrop," the company said.

The stock was down 6.3% at 2,402p by 0809 GMT. Prior to Tuesday, shares have risen by nearly a fifth since hitting a 52-week closing low of 2,170p on 13 January.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE