Bellway sees confidence stabilising

7th Dec 2010 07:50

Housebuilder Bellway expects net interim profits this year will be up by 20% on last year as buyer interest has picked up a little since the government's comperehensive spending review.Reservations are now ahead of the board's expectations, although still slightly down compared with the same period last year, while the decline in consumer confidence appears to have levelled out, it says.The group currently has 3,614 sales (2009 - 3,486) secured for this financial year and a further 400 (2009 - 598) for the next financial year. The average selling price for all these sales is £167,600. 8.4% ahead compared to this time last year. Completions in the six months to 31 January 2011 will be similar to last year, albeit at a slightly higher average selling price, with the result net profit before tax will rise by up to 20%. Net profits last half year were £14m."The outcome for the year to 31 July 2011 will be greatly dependent on the level of consumer confidence during the 2011 spring selling season. This, in turn is reliant on a reasonable supply of affordable mortgages combined with sensible lending criteria," Bellway added.