Bellway dismiss fears of consumer confidence as it posts record profits

Housebuilder Bellway has dismissed fears that consumer confidence in the UK housing market has been damaged as a result of the recent turbulence in the global financial markets.

Announcing a 9.2% jump in turnover to £1.35bn in the year ended 31 July 2007 (2006: £1.24bn), chairman Howard Dawe said: “The coming weeks will give a better indication of the overall sentiment towards the housing market but the board remains confident about the future prospects for the group.”

Pre-tax profit in 2007 was up by 6.4% from £220.7m to a new record of £234.8m.

Despite conceding that consumer confidence had “softened” since August, Dawe said the group’s forward order book at 30 September had risen from £647m last year to £667m in 2007.

The number of new homes sold rose by 7.3% to 7,638 and the average price increased by 2.5% from £169,000 to £173,300.

As a result of five interest rate rises over the year, Yorkshire, North West England and the Midlands experienced a “tightening in demand”.

London, Scotland and North East England continued trading unaffected.