Bellway sales in 38% slump.

HOUSEBUILDER Bellway said sales had slumped 38% in the past six months despite pulling out all the stops to tempt buyers.

The firm has used incentives such as discounts, shared equity and part-exchanges in "virtually every private sale", but warned margins could fall by more than half in the six months to January 31.

Newcastle-based Bellway's order book stands at pounds 296m, almost half the level seen 12 months earlier, as the housing market struggles with a mortgage drought and falling confidence.

The gloomy update comes just weeks after Bellway lost a shareholder vote over controversial payments of more than pounds 630,000 in bonuses to executives.

Investors - who have seen shares fall nearly 30% in the past year - voted down the plans amid anger that Bellway had ditched previous targets to make the payout.

But Bellway had some slightly better news for investors as it said it was on track to reduce debts by around pounds 100m to pounds 120m by the end of July.