Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

By Aby Jose Koilparambil

(Reuters) -UK’s Bellway will build a bigger share of homes in its social housing programme this fiscal year, its chief said on Tuesday, after the housebuilder announced a 100 million pound ($123.1 million) share buyback despite a fall in interim profit.

A recent uptick in buyer sentiment has not entirely allayed slowdown concerns in the British housing sector, amid higher mortgage rates and economic woes, forcing housebuilders to turn to cheaper homes in a bid to revive demand.

Chief Executive Jason Honeyman told Reuters the company started hastening construction in its social housing programme in October after a demand slump.

September’s ill-timed mini-budget from then-finance minister Kwasi Kwarteng led to a rout of government bonds, pushing up the cost of borrowing for lenders, and causing turmoil in the mortgage market.

Honeyman said homes built in the programme would make up more than quarter of overall output in the fiscal year ending on July 31. Affordable homes were 18.4% of total production in the previous fiscal year.

Bellway, which builds everything from one-bedroom apartments to six-bedroom family homes and luxury penthouses, said there was a moderate improvement in bookings since January.

It retained its annual production outlook of 11,000 homes, about 2% lower than a year ago.

Potential rate cuts next year by the Bank of England would improve affordability and housebuilders such as Bellway would welcome such a move with open arms, Adam Vettese, an analyst at social investing network eToro, said in a note.

The FTSE midcap firm said its forward order book by March 12 was 1.60 billion pounds, well below the 2.21 billion of a year ago.

Its half-yearly underlying pre-tax profit fell about 5% to 312.1 million pounds.

Bellway shares edged up about 1% in morning trade.

($1=0.8121 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts