In a six-month trading update, Jason Honeyman, chief executive, said: “Bellway has delivered another resilient performance in a period of challenging trading conditions.

“While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year.”

He said: “If market conditions remain stable and recent reservation rates are sustained throughout the spring selling season, we are well-placed to build the order book through the second half which will serve as a platform for a return to growth from financial year 2025.”

In the first six months housing completions fell 28% to 4,092, with average selling price down 2% at £309,300 due to weaker trading last summer.

As a result, revenue plunged 31% to £1.25bn in line with the board’s expectations.

Bellway said it was now building on the recent recovery in customer demand, having opened 34 new outlets in the period, and has plans to open over 40 additional new outlets in the second half of the financial year.

Honeywell predicted that full-year volume output would reach around 7,500 homes (31 July 2023 – 10,945 homes), based on greater expected completions in the next six months.

He added that the building safety programme on legacy projects was proceeding to plan with £120m being spent to date.

Bellway has now completed work on 9 developments and is advancing remediation on a further 12 developments.