Bellway shares fell over 2 percent on Tuesday morning, despite reporting an increase in sales for the current year.
The group reported robust demand for its affordably priced homes, seeing a 5.4 percent increase in the reservation rate to 223 per week in the period from 1 February to 4 June.
It said it was likely to sell around 600 more homes than last year at over £280,000 each, with an operating margin of around 22 per cent. However, the group said that it expected full year guidance to stay the same.
“Demand is most pronounced for affordably priced family homes countrywide, with divisions operating in locations as dispersed as Scotland, Essex and the Midlands all continuing to show strong performance,” the company said.
“This has been another successful trading period for Bellway, in which the demand for new build homes remained strong, enabling the group to continue delivering its long term and sustainable strategy of increasing shareholder value through responsible volume growth,” executive chairman John Watson continued.
Shares in Bellway (LON:BWY) are currently trading down 2.14 percent at 3,336.40 (0948GMT).
