Bellway optimistic despite rate rises

Housebuilder Bellway today looked forward to the crucial autumn selling season with “cautious optimism” despite recent hikes in interest rates.

The Newcastle-based business said reservations levels during the last two months were “encouraging” as buyers shrugged off the most recent of five rate rises from the Bank of England in May and July.

Rival housebuilders have given mixed trading updates in recent weeks in the current climate of rising borrowing costs, but Bellway added that the overall market remained stable.

The company’s positive update lifted shares more than 2% today, as the firm said it remained on track to deliver record pre-tax profits for the year to July 31.