Housebuilder says that an increase in the number of sales sites has not compensated for subdued levels of activity.
Housebuilder Wilson Bowden has announced that half-yearly completions will be 10% lower than last year.
In a trading statement the housebuilder said that the housing market had been subdued since late April. It said it was experiencing a 22% reduction in sales per site compared to the same period last year. This has been partly offset by a 16% increase in the number of sites on the market - it is currently operating off 143 active sites.
Wilson Bowden said that selling prices remained “generally flat” in the first half despite the increased use of incentives.
The company also said that the first half had seen a significant increase in the proportion of apartments being sold, which will reduce average selling prices and margins.
Wilson Bowden did say that reservations per visitor remained high and that it expected to deliver modest year-on-year volume growth in the second half because of the increased number of sites in operation.
It said that the final outcome for 2005 depended on the return of buyer confidence in the autumn, though it did say that group profits in the first half would benefit from good progress at Wilson Bowden Developments.
Wilson Bowden will be announcing its interim results for the six months ended 30 June 2005 on Wednesday 7th September 2005.
