London property market boosts Bellway after Made in Chelsea sale
Friday 13 December 2013
Housebuilder Bellway is capitalising on London's roaring property market after selling a clutch of Made in Chelsea expensive aparments.
The sales have pushed Bellway’s average selling price to £205,000 in for the first six months of the financial year. The firm completed the sale of 25 apartments at its Chelsea Reach scheme at an average price of more than £700,000 each during the period, boosting its sales by nearly £18 million.
Chief executive Ted Ayres, pictured, said two penthouses had fetched in excess of £1 million each.
The figures came amid more signs that the housebuilding industry is beginning to gear up to meet demand inspired by the Government’s Help to Buy scheme, with an 18 per cent rise in new orders between July and September compared to a year earlier.
More than half of the £2 billion increase in orders was down to new housing work. The industry gained £1.2 billion in new housing orders over the quarter, up 42 per cent on the previous year.
Total new housing orders are at their highest level since the end of 2007, the Office for National Statistics said. The ONS also said construction output had been stronger than initially thought in the first and third quarter of 2013, adding 0.1 percentage points to the overall economy’s growth in each quarter.
Bellway added that sales between August and the end of November had risen to an average of 144 per week — up 43 per cent compared to the same period last year.
The Government’s mortgage scheme is being used in almost a third of new sales reservations, the firm added.
Ayres said: “Sales rates are up quite significantly compared to last year... the next big challenge for the industry is constructing the units to meet the demand.”
Higher margins coming through from land bought at cheaper prices is expected to push operating profits up at least 15 per cent in the year to July 31, although Bellway has begun to see rising build costs.
“We have seen a 2-3per cent in tender costs from subcontractors in the past few months and I don’t see that abating,” Ayres added.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price Palestinian children are paying for Israel’s war with Hamas
Iraq crisis: Government forces execute 255 Sunni prisoners in revenge for Isis atrocities, says report
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...