Bellway, a prominent UK housebuilder, has indicated a slowdown in buyer demand attributed to rising mortgage rates and increased construction costs. The average two-year fixed mortgage rate has surged to 5.63%, compared to 4.83% earlier in March, contributing to a 6.2% decline in the company's private reservation rate, averaging 151 homes per week from February to May. The overall reservation rate, including social housing, also fell by 5.1%, reflecting the impact of geopolitical uncertainties in the Middle East and inflationary pressures. Despite the softening demand, Bellway reassured investors with a low cancellation rate of 10% and maintained its profit guidance between £320 million and £330 million. The company plans to build between 9,300 and 9,500 homes in the financial year ending July 2026, exceeding last year's completion of 8,750 homes. Shares of Bellway rose by 2.79% to 1,804.00p, although they have seen a decline of over 30% in the past year.