Bellway sees effect of tax increase uncertainty

The Newcastle-based firm said the uncertainty over the coalition's plans to tackle the deficit had caused a "slight reduction" in site visitor levels and weekly sales since early May.

But the company said sales in the year to July 31 would be 200 ahead of the previous 12 months, while the firm also has 1,800 reservations for the next financial year.

Bellway added that the potential changes to the planning system could also "pose new challenges to the business" after proposals to scrap regional planning targets for local authorities.

Despite the post-election blip, the firm said it had maintained a sales rate broadly in line with last year at around 100 sales a week during the 18 weeks since February 1.

Average selling prices were around 10 per cent higher due to changes in the housing mix and a greater exposure to the housing market in the South, where prices have been firmer.

Bellway has been snapping up land – particularly in the South – with 151m committed on 2,475 plots so far.

It added that it was "well positioned" for future growth thanks to a strong forward order book, healthy net cash of 55m and margins boosted by stringent cost controls.

Collins Stewart analyst Imran Akram said the firm's slight sales dip since the election was "a rather benign outcome to date given the talk of the age of austerity".