Bellway sees 19% rise in weekly new homes sales

There was a significant rise in the number of people snapping up new homes from Bellway over the spring with average weekly property sales increasing by 19%, according to the housebuilder.

The company said that new homes reservations, net of cancellations, averaged 122 per week between the start of February and the end of May, up 9% on the previous year. Private weekly sales increased by 19%.

Bellway is on course to meet its target of 5% volume growth at the end of the year which would see an additional 300 new homes built in the year ending 31 July. The developer has also secured in the region of 1,600 reservations for off-plan homes scheduled for completion in 2012/13.

The average selling price on reserved properties since the beginning of February is £190.400, up 5% year-on-year.

Aside from the hike in reservations, the rise in property prices reflects the firm's decision to develop more upmarket new homes in London.

Property prices and sales have also been boosted by the introduction of the Government-backed NewBuy scheme, which allows lenders to provide 95% loan-to-value mortgages on new build homes worth up to £500,000.

"Assuming consumer demand and the availability of affordable mortgage finance remain unchanged, then the Group's capacity to grow geographically, combined with a strong balance sheet, mean that Bellway is well positioned to continue its three-pronged strategy of increasing volume, average selling price and operating margin," Bellway said in a statement.