HOUSEBUILDER Bellway yesterday said sales rates were down more than 50 per cent on last year after trading conditions remained “extremely testing”.

The Newcastle firm reported 50 to 60 sales a week, while its order book at the end of last month stood at £340m, compared with £677m last year.

Bellway said sales incentives have been used on “virtually every private sale”, with part exchange the most common tactic.

It also warned that pricing pressures, driven by rival firms and lenders’ lower valuations, meant a further review on the value of its land and work in progress could not be ruled out.

Cancellations are running at historically high levels of 24 per cent and visitor numbers are about 50 per cent down compared to last year, the company said.

The group has cut about 35 per cent of its workforce this year to cope with the housing market slowdown. It said cost pressures had eased, while strict controls on work in progress had resulted in the number of completed properties in its possession being 15 per cent lower than previously reported. As a result of the measures, Bellway said it remained on track to reduce borrowings by £100m over the year to July.