Bellway sees lower margins, completions as mortgage rates rise

(Sharecast News) - UK housebuilder Bellway said it expected to complete fewer homes in the current fiscal year and deliver lower margins amid weak demand and a lower order book.

The group is targeting total completions of between 9,000 and 9,400 compared with 9,695 in the prior year.

"Since the start of the new financial year, the subdued trading conditions experienced from late spring have continued. Customer demand remains constrained by affordability pressures, with mortgage interest rates above prior-year levels, while wider economic uncertainty continues to affect homebuyer decision-making," Bellway said.

The forecast comes after the company reported a 5.7% increase in underlying pre-tax profit to £305.7m in year to July and announced a £150m share buyback.

Reporting by Frank Prenesti for Sharecast.com