Bellway profit margins hammered

Profit margins at Bellway are being chipped away as the housebuilder is forced to slash property prices to help cash-strapped buyers.

The group reported a 45 per cent plunge in transaction levels in the six months to July 31.

Newcastle-based Bellway said efforts to drum up demand are likely to see full-year operating margins drop by up to 3 per cent against last year's 18.7 per cent.

The housebuilder, which is having to cut prices by an average £10,000, said it is "fully focused" on cutting costs.

It recently made 150 staff redundant as it merged offices and closed four sites - in Scotland, the South West, Midlands and Thames Gateway.

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