Bellway Homes saw a significant drop off in completions and revenue in the six months to the end of January.
In a six-month trading update issued today, the firm said it finished 4,092 homes in its interim period against 5,695 for the same period a year prior.
Revenues for the period slipped in accordance with board expectations to £1.25bn against £1.8bn, due to the period of challenging trading conditions. Net cash for the period fell 73 per cent to £77m.
The builder said its average selling price in the first half of its year fell to £309,300 from £316,929 a year earlier. It added the average price could fall further to £295,000 for the full year.
However, the company noted there’s already been a pickup in activity this year. It noted there had been “encouraging levels of customer enquiries in the traditionally quieter winter trading period,” as mortgage rates had stabilised.
Still, Bellway anticipates a bumpy road ahead, with a 3,970-home, £1bn order book as of 31st January, a 22 per cent slide in demand on last year.
Provided market conditions remain stable, the group hopes to increase the book to 7,500 homes for the year, down on the 10,945 delivered last year.
It added however that should the market continue to show signs of returning to strength, 2024 will serve as a platform for volume recovery from financial year 2025.
Jason Honeyman, group chief executive, said: “Bellway has delivered another resilient performance in a period of challenging trading conditions.
“While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year.
He added: “We have maintained balance sheet resilience and, supported by the strength of our land bank, Bellway remains well-placed to capitalise on future growth opportunities and will continue to play an important role in increasing housing supply in the years ahead.”
The housing market was dogged by uncertainty last year, but there are already green shoots appearing this year. The latest figures show house prices are rising and the juicy £2.5bn megamerger between Barratt Developments and Redrow has boosted the sector.