Better times for Bellway Homes

The housebuilder Bellway said yesterday that it expected a 20 per cent hike in interim profits, arguing that buyer confidence was returning to the housing market following the Government Spending Review. The company said home reservations had increased since details of the review were announced, although they remain lower than a year ago.

Bellway had previously said that it had not seen the traditional autumn pick-up as buyers delayed purchases until George Osborne had given details of the cuts. But it said the decline in consumer confidence had levelled out and added it was encouraged by people buying homes at a time that is normally slow for the housing market.

Sales secured for this financial year were 4 per cent higher and the company expects the number of properties it sells in the six months to 31 January to be the same as last year. Pre-tax profits could hit £22.8m in the first half.