Bellway sees strong Spring

The scheme, know as NewBuy, allows lenders to provide 95 per cent mortgages on new build properties worth up to 500,000 with guarantees from the Government and developers to help new buyers, who have been frozen out of the market since the 2008 financial crisis.

“The longer-term success of this initiative will depend upon the approach of lenders to mortgage rates and credit scoring criteria, and to this extent, it will be some months before the group is able to determine whether NewBuy will have any incremental effect on sales rates,” Bellway said in a statement.

For the 17-week period from February 1 to May 31, Bellway reported a nine per cent increase in reservations, net of cancellations. Private weekly sales rose 19 per cent.

Britain’s fourth-largest housebuilder by market value also reported a five per cent increase in the average selling price for reservations taken since February 1, and said it expects completions for the year-ending 31 July to exceed those achieved last year.

Like other housebuilders, Bellway has been helped by its focus on the London market which has been the bright spot in an otherwise uncertain housing market, due to strong demand from overseas buyers.

Bellway’s report echoes similarly upbeat statements from its rivals.

Last month, Bovis Homes Group said it expected a strong profit growth this year. York-based Persimmon and Taylor Wimpey also reported strong starts to the year helped by growing orders and higher visitor levels.