Housing demand on the up

Posted: 04 Apr 2006 10:36:17 GMT

Despite posting a 2.1 per cent decline in profits, low-cost home builder Bellway is optimistic about the future of the housing market.

Pre-tax profit was £87.8 million in the six months to January, which compares to £89.7 million in the same period a year earlier.

Nonetheless, the order book for 2006 is thought to be in the region of £715 million, while as much as 92 per cent of the company's annual target has already been secured.

"February and March have shown early signs of improvement in the market with sales not being as incentive-led as in 2005 and we remain cautiously optimistic at this stage," said chairman, Howard Dawe.

Mr Dawe admitted that 2005 was a challenging year for the housing market, but he suggests that the foundations have now been laid for steady growth in the coming months.

Demand from homebuyers is again high and experts are predicting this will be sustained throughout much of the year.

At the same time, a combination of rising house prices and growing concern about the underhand tactics of estate agents has dented consumer confidence somewhat.

Counterbalancing this, however, increasing numbers are instead opting to take advantage of private and online selling, to bypass some of the complications and frustrations that have crept into the market elsewhere.


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