Newcastle housebuilder Bellway sees home reservations fall by almost 70% since start of lockdown
Newcastle house-builder Bellway say home reservations have fallen by almost 70% since lockdown began.
The builder is warning that sales activity will continue to be "severely constrained" until lockdown is lifted by the government.
The group said the weekly net reservation rate fell by 69% to an average of 71 homes between March 23, when the UK was placed in lockdown, until May 31 - down from 231 a week last year.
House completions dropped 12% to 6,721 between August 1 and May 31 - including 708 since the March 23 lockdown.
Bellway joined rivals in shutting construction sites, show homes and salescentres following the lockdown, even though construction was allowed to continue throughout.
The housing market was also halted as people were told not to move where possible.
Bellway began the phased reopening of construction sites and sales offices last month as the government also said estate agents and show homes could open again for viewings.
The group said despite the sales hit, pricing has remained "firm" and that itwas seeing a gradual pick-up in customer interest having opened all its salesoutlets in England since June 1.
Bellway has also now restarted building work on around 230 sites, although this is focusing on homes in the latter stages of production.
It said: "Given the ongoing uncertainty, financial guidance remains suspended, however, the resumption of build programmes should enable Bellway to slowly increase the number of completions throughout the late summer and autumn months.
Bellway assured that its forward order book remained "substantial" despitethe coronavirus impact, down 4% year-on-year at 6,038 homes.
It hopes to gradually increase the construction rate, with aims to allow more than one tradesman to work in a home at the same time, albeit on separate floors, over the coming weeks.
Shares in the group dipped 3% after the update. But analysts at investment banking company Liberum said sales activity had been better than expected at Bellway.
They had forecast in April that new home sales would stop for three months before recovering after lockdown restrictions ease.
Bellway said it had at one stage furloughed 75% of its staff, but paid affected employees full basic pay throughout April and May and has not drawn on the Government's job retention support scheme.
It has secured eligibility for a Covid-19 corporate loan through the Bank of England, but has not yet had to draw down on it.