Housebuilder Bellway has warned that it expects buyer demand to plunge as the 海角视频 locks down amid the coronavirus crisis.
The Newcastle firm said sales have plunged by around 40% this week as strict new social distancing measures came into effect, with cancellation rates also more than doubling to around 30%.
The group also confirmed that, while construction sites are among those workplaces that are allowed to remain open in the 海角视频, it has decided to close its 200 building sites by the end of Friday.
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Chief executive Jason Honeyman told the PA news agency he expects the steep sales falls seen in recent days to worsen and “almost cliff-edge” as the 海角视频 grinds to a halt to slow the spread of Covid-19.
On the decision to shut construction sites, he added: “We weren’t convinced we could police the social distancing or keep workers two metres apart at sites.
“There’s always some people who ignore it.”
He added that the group was also unable to get materials as builders’ merchants are closed and there are no deliveries.
Bellway this morning reported interim half-year results for the six months up to January 31 – before the virus took effect – which revealed revenue rising 3.6% to £1.54bn, though operating profit fell 7.1% to £297.2m.
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The company said it was taking immediate action to preserve the strength of its balance sheet, including a pause on the acquisition of new plots for housing, while it would postpone a decision on whether to pay an interim dividend until later in the year.
But it said that the six-month period it was reporting on had seen “solid results”, with a record 5,321 home completions and a strong balance sheet with net cash of £4.6m.
It added: “Longer term, the group has the ability to be highly cash generative should we enter a prolonged period in which land and Work In Progress spend are curtailed.”
And the company said that reservations had increased in the six weeks since February 1 – showing “encouraging underlying customer sentiment for new build housing” before falling sharply in the last fortnight.
Elsewhere in the housing sector, Northern housebuilder Persimmon confirmed it is also starting an “orderly shutdown” of its construction sites.
It said it would continue with essential work only, making partly-built homes safe, where otherwise customers could be left in a vulnerable position.