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Housebuilder sees drop in demand

ended 18. October 2022

Housebuilder Bellway has today revealed a drop in homebuyer demand and warned sales volumes are set to remain largely flat over the year ahead due to rising interest rates and economic uncertainty. The Newcastle-based group said weekly house reservations have fallen 12.4% year-on-year to 191 in the nine weeks since August 1. Few Qs:

  • Are you seeing demand drop off among buyers? If so, sharply or moderately?
  • Are you seeing clients decide to put prospective house purchases on hold?

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Editor
Mike Staton
Director at Staton Mortgages
I have seen a steep decline in prospective buyers with many wanting to get christmas out of the way and see what the market looks like in the new year. The knock-on effect of this is that sellers already on the market may have to lower their prices in order to attract potential buyers. What worries me as a broker, with developers already having a track record of bullying clients and misselling their own additional services, is how desperate they may get in order to make a sale. They have flaunted the rules regularly during the most fruitful time to be in this industry so what's going to happen when the market deteriorates? Maybe this drop in demand will prompt them to work alongside independent brokers instead of throwing them under a bus and forcefully stealing their clients with appalling sales tactics.