Bellway: Completions surge at FTSE 250 housebuilder
Bellway has said it expects to see a surge in home completions amid an increase in consumer confidence and reservation rates.
The FTSE 250 housebuilder and property developer said it was well-positioned to deliver cumulative volume growth of 20 per cent over the two years to end July 2026.
In a trading update, the Newcastle-based business said it was now fully sold for the current financial year, adding that it had contracted to purchase 6,759 plots since 1 August 2024, a jump of more than 70 per cent compared to the previous year.
The number of completions in the current year is now expected to be between 8,600 and 8,700 homes, Bellway said, a rise of as much as 14 per cent on last year. Average selling prices nudged up 2.3 per cent to £315,000.
CEO Jason Honeyman said: “Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year.
“We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26.
“I remain confident that, supported by the Group’s operational strengths, land bank depth and an increased focus on cash generation and capital efficiency, Bellway can capitalise on the positive fundamentals of our industry and deliver volume growth, improved returns and ongoing value creation for shareholders.”
Market recovery
Bellway shares have risen by more than 10 per cent since the start of the year, though they remain behind where it was trading nine months ago.
Last year, the firm revealed a near one-third drop in completions and revenue and a more than halving in profits, citing a lacklustre housing market and high levels of inflation.
Honeyman was hopeful that stripping away red tape in the planning system would be beneficial to Bellway.
“We welcome the new Government’s plans to reform the planning system, which in time is expected to unlock land supply and support an increase in new housing across the country,” he said.
Oli Creasey, head of property research at Quilter Cheviot, said:
“Bellway’s trading statement this morning shows a company, and housebuilding industry, on the road to recovery, and making steady, albeit relatively slow, progress.
“A 13 per cent year-on-year increase [in volumes] while a clear improvement, will still leave the company c.20 per cent below volumes from the peak years in 2022/2023. Similarly, the company is some way off the 18.5 per cent operating margin achieved in 2022.”