Bellway lifted by statement

Bellway is up 1.9% after the home builder revealed a positive interim management statement.

Bellway is trading at 1439p after the firm released a positive statement for the 18-week period from the 1 August to 30 November 2013. Consumer demand has been high for new homes and net reservations are up 43% on the year.

The Help to Buy initiative has boosted all house building companies. George Osborne’s scheme, which echoes Margaret Thatcher’s Right to Buy policy in the 1980’s, assists first-time buyers if buying new homes. It has helped individuals get on the property ladder and also boosted the construction industry, which was left ailing after the credit crunch.

Last month, Bellway and other homebuilders took a knock after Mark Carney of the Bank of England stated he is going to redirect the Funding for Lending scheme away for the housing market and towards small business.

Bellway has recovered some of the losses since the announcement; some of the sell-off was profit-taking as the stock is still up 40% year-to-date. The trend is upward so it could be a buying opportunity.

Bellway chart

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