Bellway has said it will take months to judge whether NewBuy will have the government’s desired effect on sales, despite securing 90 reservations in 11 weeks under the scheme.
In an interim management statement today, the group welcomed the mortgage indemnity guarantee scheme which it said contributed 90 reservations for the group in the eleven weeks since its launch.
Reservations under the New Buy scheme reached 400 in its first two months, the Home Builders Federation said last month.
The housebuilder stated: “The longer term success of this initiative will depend upon the approach of lenders to mortgage rates and credit scoring criteria.”
Bellway also announced it expects to produce an operating margin of at least 11 per cent for the full year.
Its target set at the beginning of the financial year of achieving 5 per cent volume growth is now secure, subject to build delivery.
Bellway is confident that legal completions for the year ending 31 July 2012 should exceed those achieved last year by around 300 units and around 1,600 reservations have been taken for completion in 2012/13.
The average selling price in respect of reservations taken since 1 February is £190,400, an increase of 5 per cent compared to the same period last year.
Demand throughout the spring selling season has remained resilient with visitor levels and reservation rates continuing to outperform expectations. During the 17-week period under review reservations, net of cancellations, have averaged 122 per week, an increase of 9 per cent on the prior year.
The increase in the private weekly sales rate is more marked at 19 per cent, having been attained from an average of 210 sites, compared to 195 last year.
The Group’s land teams have continued to be active in the market, having expended £195 million on land and land creditors and having agreed heads of terms on a further 4,800 plots.
The Group had net bank debt of £35 million at 31 May