Begbies Traynor comments on housing market

Commenting on the latest results from Bellway, Julian Pitts, regional managing partner for Begbies Traynor in Yorkshire, said:

“Despite slashed profits and falling completions the outlook at Bellway is positive. A mini post-national-lockdown boom has boosted its order book and given hope to the company as it digs for normality. However, many will be worried that as we get deeper into the pandemic new issues in the housing market will be unearthed.

“Bellway will be wary that many people may start to hold off buying. The stamp duty break and the end of help-to-buy in April 2021, may not be enough to keep the market ploughing forward while the loss of more jobs and people becoming increasingly worried that they won’t always have a reliable income to support a new home will only add to the barriers for buying. This could drive a significant shift towards less expensive home renovation, leaving the new build market in a difficult space.

“With a growing population there will always be a demand for new housing, but Bellway and its competitors will have to make sure that in this climate the right incentives and prices are there to make a move manageable. That will be the key to keeping its forward order book high and recouping the profits it lost during the pandemic.”