Bellway records rise in buyers pulling out of home deals

The number of would-be homebuyers pulling out of deals is creeping higher in the run-up to Brexit, housebuilder Bellway said on Thursday.

The FTSE 250 business said cancellation rates rose to 13% in the six months to January 31, up from 11% a year earlier.

Bellway’s finance chief Keith Adey said: “This reflects a slight nervousness in the economy ahead of the UK’s looming departure from the EU. It is to be expected.”

The company has been using some incentives to entice buyers, particularly for more expensive properties, including agreeing to cover stamp duty costs and upgrading kitchen appliances for nothing.

Those sweeteners to get deals over the line — coupled with good mortgage terms and the Government’s Help to Buy scheme — helped first-half revenues rise 12% to almost £1.5 billion.

Bellway sold 5007 homes during the period, up 6%. In the full-year it expects to beat the 10,307 homes sold last year, but thinks profit margins will be flat.

The shares fell 54p to 2836p.