Bellway's results show sales down over 14pc

Newcastle-based housebuilder Bellway has issued its half year results, showing a decline in completed sales of 14.2 per cent.

Newcastle-based housebuilder Bellway has issued its half year results, showing a decline in completed sales of 14.2 per cent.

Year-on-year reservations are also down 45 per cent, the construction firm revealed, as it releases the first in a long line of expectedly poor half year results from the nation's homebuilders.

John Watson, chief executive of Bellway, argued against the necessity of making writedowns, noting that profit margins, while down three per cent, are still healthy.

"At this point we are still showing a 15 per cent margin, so why do we need a writedown?" he suggested.

"There may be some sites we bought last year that will show a lower margin than that but we do not need to writedown across the board."

With a strong focus on housing association properties this year, the average Bellway home sold for £169,000. While this is in line with the average price of a property in the UK today, the overall drop in value is significantly lower than the national average of 11 per cent.

Keith Bowman, equity analyst at stockbroker Hargreaves Lansdown, told the Times: "Given Bellway's more measured approach to growth over recent years, the company now appears to be reaping some benefit."