Help To Buy scheme boosts Bellway home sales

 

The Government's Help To Buy scheme has accounted for a quarter of all the new homes sold by Bellway in the past two months.

The housebuilder has been averaging 160 sales a week since February - up 31 per cent compared with last year - and sales have strengthened further still since the launch of Help To Buy on April 1.

The runaway start to the scheme, which offers equity loans of up to 20 per cent on new home purchases, has sparked worries over a potential bubble as demand runs ahead of supply. Industry estimates suggest 4000 sales backed by the initiative in the first two months alone.

Bellway's management were quick to scotch talk of a bubble - "I don't believe so," said chief executive Ted Ayres - but the firm's average selling prices are at an  all-time high of £200,300. However, Bellway puts this down to a shift away from building flats to houses and a greater emphasis on buoyant southern markets, where prices have been "modestly above" hopes.

The firm has already hit its target of 5 per cent growth in sales volumes for the year to July, and is now expecting a 7 per cent rise for the full year.

Finance director Keith Adey said that Bellway expects "at least a similar level of growth" next year.

London accounts for about 20 per cent  of its sales with sites in Hackney, Tower Hamlets, Haringey and Greenwich, but Help To Buy has been more evident outside the capital where markets are less buoyant, Bellway said.

The company, meanwhile, remains reluctant to ramp up volumes significantly as a result of the drive.

Adey added: "We're not gearing up the business significantly as a result of Help To Buy. With any Government-backed initiative, it will have a limited lifespan, so you can't have a strategy based on it being around forever."

Bellway has previously avoided shared equity schemes where both the builder and the Government provided loans, for fear of tying up its balance sheet. However, the loans under Help To Buy come solely from the Government.

Numis analyst Chris Millington said: "Use of Help To Buy has accelerated reservations to a greater extent than peers, given its previous cautious stance on using shared equity."

Start your day with The Independent, sign up for daily news emails
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Guru Careers: Communications Exec / PR Exec

£25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral