The group said reservations were down 9 per cent amid a shift in consumer confidence after last summer's credit crunch.
It reported pre-tax profits of £96.9 million in the six months to the end of January, against £100.8 million the previous year. Turnover fell to £581.5 million from £576.5 million for the same period in 2007.
But the firm said its strategy of forward selling helped soften the blow of a tougher housing market, with £670 million worth of forward orders so far secured - 88 per cent of its revised annual target for the whole financial year.
Bellway - the UK's fourth largest housebuilder - said the market was particularly challenging in the Midlands, Yorkshire and the North West.
But the company said demand and keen pricing in the affordable sector of the market was holding up well in Scotland and the south of England.
The Newcastle-based group, which targets the lower end of the housing market, said it was seeking to tempt buyers with incentives, such as by offering carpets and curtains in the sale price.
The number of houses sold in the six-month period fell slightly to 3,252 against 3,264 in the same period last year, leaving housing turnover up 0.5 per cent to £568.4 million.
The average house price increased marginally to £174,800 from £173,300.
Bellway finance director Alistair Leitch said first-time buyers were being priced out of the market, as lenders demanded deposits of between 25 per cent and 30 per cent in some cases.
He said: “A first time buyer finds it very difficult to get a 25 per cent deposit, even with a Bellway low cost property, unless they have someone backing them.''