鈥� but housebuilder warns that forward orders are down 21%, and Hometrack survey reports house price falls

Westbury this week followed other housebuilders in posting record results 鈥� and in warning that the months ahead will be tough for the market.

Despite a hike of more than 20% in profit, Westbury鈥檚 forward orders have dropped 21% compared with the same period last year, according to analysts.

The half-year results were announced on Tuesday, the same day that research group Hometrack said house prices fell for a fourth month in a row in October.

Westbury鈥檚 pre-tax profit rose 21% to 拢62m for the six months to 31 August 2004. It sold 2087 homes, 56 more than the same period last year, at an average of 拢192,150.

However, chairman Geoffrey Maddrell warned: 鈥淚n the short-term, consumer confidence, which is influenced by wider economic and social factors, could inhibit demand.鈥�

Wesbury鈥檚 Space4 business, formed three-and-a-half years ago, broke even in the first half after selling 932 units to Westbury and 143 to other customers. It was the first time that Space4 did not make a loss.

Shares in the housing sector overall were up after Westbury鈥檚 results on Tuesday, reflecting relief that they were in line with expectation, despite recent negative trading statements from Wimpey and Taylor Woodrow.

Westbury鈥檚 shares rose 14p to 383.25p on Tuesday afternoon.

Director Colin Cole was upbeat about prospects for the housing market. 鈥淐ustomers are taking longer but generally people think that interest rates have peaked or are least close to it,鈥� he said.

Cole predicted that Westbury鈥檚 homes would increase in price by 3-4% in the next 12 months across the UK.

Westbury recommended an interim dividend of 5.35p a share, up 20%, and said that the company expected to provide double-digit dividend growth in the long term.

Hometrack鈥檚 October survey was less positive. It said house prices fell 鈥減ractically everywhere鈥�, and nationally prices dropped 0.6% in October. The worst affected areas were Avon, which dropped by 1.6% and north London, which fell 1.5%.

John Wriglesworth, Hometrack鈥檚 housing economist, said: 鈥淗ouse prices will not plummet into an abyss as some are predicting.鈥�

He added that house prices would not grow at all in 2005.