UK-based housebuilder Bellway PLC (LSE:BWY) reported housing revenue of over £1.25 billion for the six months ending 31 January, a 30% decrease from the previous year.
The result reflected broader economic uncertainties impacting the housing sector.
In a trading update, Bellway said the total number of housing completions fell by 28.1% year on year to 4,092 homes, with an average selling price slightly reduced to £309,300, down from £316,929 in 2023.
Despite these challenges, Bellway demonstrated resilience in several areas.
The company saw a 15.4% increase in its private reservation rate, indicating a rebound in customer demand.
This uptick is partially attributed to a reduction in mortgage interest rates, which has begun to ease affordability constraints for buyers.
Bellway also opened 34 new outlets during the period, with plans to open over 40 more in the second half of the financial year, signalling a strategic push to capitalise on recovering market conditions.
The forward order book as of 31 January stood at 3,970 homes, valued at just over £1 billion, down from 5,108 homes worth £1.386 billion the previous year.
This decrease aligns with the higher expected weighting of housing completions in the first half of the financial year 2024.
Nonetheless, Bellway remains optimistic about its ability to increase the order book by the end of July 2024, provided market conditions remain stable.
Bellway said it is encouraged by improved customer enquiry levels and reservation rates in the early months of 2024 and is aiming for a return to growth from the financial year 2025.
Chief executive Jason Honeyman commented: "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.
“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."