Bellway hit by demand for large mortgage deposits

Housebuilder Bellway today warned that business will be tough this year as mortgage lenders demand large deposits from home buyers.

Chief executive John Watson said: "Historically there is always an uplift as the traditional spring selling season unfolds.

"However, with mortgage providers continuing to require a high level of deposit, particularly for first-time buyers, we expect trading conditions during the first half of 2010 to be subdued relative to historic levels."

The firm also warned that its margins remain under pressure due to low selling prices.
Its shares fell 24½p to 738p.

Bellway sold 2247 homes in the six months to 31 January compared with 2014 in the same period a year earlier. The average selling price slid from £156,146 to £156,000.

The company's order book at the end of January stood at £390 million, or 2506 homes, against £296 million at the same time last year.