Housebuilder Bellway has said it is “encouraged” by a pick-up in customer inquiries and reservations despite “challenging market conditions”.
The firm said it is mindful of mortgage affordability concerns and the changing economic backdrop.
It is among housebuilders who have seen orders and completion rise over the past year amid improving activity in the sector.
Reductions in interest rates have helped to boost demand although mortgage rates have remained high in recent months amid reduced forecasts for rate-cutting in 2025.
Jason Honeyman, group chief executive, said demand was “robust” despite elevated mortgage costs.
Bellway said its private reservation rate was “strongly ahead” year-on-year to 127 per week for the six months to January, compared with 105 per week last year.
It added that its forward order book grew to 4,726 homes, with a value of £1.31 billion, on January 31, compared with 2,970 homes, with a value of £1.01 billion, a year earlier.
Meanwhile, housing completions increased by 11.9% to 4,577 homes from 4,092 a year earlier.
Mr Honeyman said: “Bellway has delivered a strong first half performance in challenging market conditions.
“While mortgage interest rates have increased modestly since the autumn, customer demand has remained robust, and the group has a healthy order book to support our targeted growth in volume output for the full year.
“The group has a strong balance sheet and land bank, and we remain very well-positioned to capitalise on future growth opportunities while continuing to play an important role in meeting the growing need for new homes across the country.”
Shares in the company fell by 5% to 2,436p on Tuesday morning.
