Bellway says economic worries hit house sales

The Newcastle-based company said it made 100 sales per week in the 18 weeks to June 15, with a dip in visitor levels and weekly sales in recent weeks.

"Since the general election, uncertainty concerning anticipated government fiscal policy and spending reviews has resulted in a slight reduction in both site visitor levels and weekly sales rates," said Bellway in an interim management statement.

The recovery in British house prices has lost its steam in recent months, with prices falling according to mortgage lender Halifax.

General malaise about the economic picture and fear of unemployment is leading to many postponing a house sale or purchase.

A tentative recovery in the property market is also likely to be undermined by new planning red tape that will devolve more planning power to local levels, but may hinder new projects in the short term.

"Possible changes surrounding the planning system could pose new challenges to the business," said Bellway.

The company said legal completions will rise by 200 from last year's completion level of 4380. It added that 1,800 reservations have been taken for 2010/2011 so far, with selling prices up 10 percent year-on-year.

The group has committed 151 million so far to new land, representing 2,475 plots.