Bellway is the latest housebuilding to report “encouraging” signs of purchasers returning to the housing market following the recent fall in mortgage rates.

In January this year, approximately 0.59 homes were bought at every Bellway site each week, compared to just 0.45 homes in the same month last year.

“Affordability steadily improved throughout the period, driven by wage increases, the easing of consumer price inflation and a gradual reduction in mortgage interest rates,” said Bellway.

The company added that good availability of mortgage products has helped to fuel greater customer demand since summer 2023, although affordability remains a challenge for those needing higher loan-to-value mortgages.

Mortgage rates have fallen in recent months in anticipation of future reductions in the Bank of England’s base rate, which appears to have peaked at 5.25% – unchanged since August 2023.

Bellway announced that it had completed the construction of 4,092 homes in the six months to the end of January, a fall of around 1,600 from the corresponding period a year earlier.

The average selling price stood at £309,300, down from £316,929.

Jason Honeyman, chief executive at Bellway, 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.

“We are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year. We have maintained balance sheet resilience and, supported by the strength of our land bank, Bellway remains well-placed to capitalise on future growth opportunities and will continue to play an important role in increasing housing supply in the years ahead.”