Housebuilder fears slow start to 2010

 A lack of mortgage affordability will continue to hamper the housing industry during the first half of 2010, according to new home developer Bellway.

In its latest trading update, Bellway stated that the traditional upturn in new home sales witnessed in spring, may not occur, due to the fact that mortgage lenders continue to be overly cautious.

The firm also noted that first-time buyers were still hindered by mortgages that required high levels of deposits.

Over the half-year to 31 January, Bellway completed 2,247 new homes while the average selling price for a new build property was £156,146.

However, new home reservations improved from to an average of 85 per week compared to 65 in the corresponding period last year.

A Bellway statement said: “We expect trading conditions during the first half of 2010 to be subdued relative to historic levels.

“The group is currently well positioned and is trading profitably with a high level of targeted output already secured and no borrowings. This should enable Bellway to take advantage of opportunities as and when they arise.”

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