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Housebuilder Bellway today highlighted the plight of first-time buyers and warned of a North-South divide in the market.
“First-time buyers continue to struggle to raise deposits, and consequently access to the first step on the housing ladder remains difficult,” said chief executive John Watson.
He also said the South was recovering from the market slump much quicker than the North.
“The southern-based divisions have experienced a marginally stronger market and it is envisaged that turnover in these divisions will be much higher by the year end than the northern-based divisions whose markets still remain fragile,” said Watson.
Bellway said it is still difficult for potential house buyers to get mortgages and that the number of sales which are cancelled “are still running at historically high levels”.
Reservations average 105 a week, although incentives such as discounts, part exchange and shared equity are needed to tempt buyers into the market.
Watson said: “The summer selling season normally heralds a slowdown in activity and selling homes in the early stages of construction is difficult, given the current lending environment.”
Bellway shares, which crashed from 1690p in April 2007 to 377¾p in July last year, fell 2p to 656p today.
Reader views (2)
The Northern housing market was spurred by the South, unfortunately this also meant a lot of BTL investors from the South investing heavily in the Northern market which in turn produced unsustainable pricing in an already overinflated market. The South has recovered more quickly because although the property's are more expensive, the price was more sustainable due to the higher wage bracket.
- Bob, Cheam
The first correct assumption of the market!
- Peter, london
