Bellway Reports Decline in Buyer Demand Amid Rising Mortgage Rates
Higher mortgage rates are quashing buyer demand, says Bellway

Image: Mail Online
Bellway, a UK housebuilder, has reported a decrease in buyer demand due to rising mortgage rates and construction costs. The average two-year fixed mortgage rate has increased to 5.63%, impacting the company's reservation rates and overall outlook amidst geopolitical tensions.
- 01Bellway's private reservation rate fell by 6.2% to an average of 151 per week between February and May.
- 02The average two-year fixed mortgage rate rose to 5.63% from 4.83% in March, affecting buyer demand.
- 03Bellway expects to build between 9,300 and 9,500 homes in the financial year ending July 2026, up from 8,750 last year.
- 04The company reported a low cancellation rate of 10% and maintained its annual profit guidance of £320 million to £330 million.
- 05Bellway shares increased by 2.79% to 1,804.00p, despite a 30% decline over the past year.
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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.
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The increase in mortgage rates is leading to reduced buyer demand, which could affect housing market dynamics and pricing.
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