Bellway has seen its completions rise by 12% in the first half of its financial year and says that it remains on course to build 8,500 homes during the full year.
In its latest trading update for the six months ending 31 January 2025, Bellway recorded 4,577 completions, up from 4,092 the previous year. The developer’s private reservation rate per outlet per week also increased, up 18.6% year-on-year to 0.51 from 0.43. This includes a contribution from bulk sales of 0.06 (0.03 in 2024).
During the period, the group operated from an average of 248 outlets, up from 243 the previous year, while the average selling price also rose marginally to £310,600 from £309,278 in 2024.
As of 31 January 2025, Bellway’s forward order book comprised 4,726 homes, up from 3,970 homes in 2024, with a value of £1,311.5million.
The trading update said that the group remains on track to deliver its forecasted full-year output of at least 8,500 homes, which would be an increase of close to 1,000 homes year-on-year.
Jason Honeyman, group chief executive of Bellway, commented: “Bellway has delivered a strong first-half performance in challenging market conditions. While mortgage interest rates have increased modestly since the autumn, customer demand has remained robust and the group has a healthy order book to support our targeted growth in volume output for the full year.”
“The Group has a strong balance sheet and land bank, and we remain very well-positioned to capitalise on future growth opportunities while continuing to play an important role in meeting the growing need for new homes across the country.”
The update continued to say that Bellway’s land bank was strong and that its team continued to implement a “disciplined and targeted approach to land acquisition”.
Its land acquisition has increased significantly year-on-year to 5,246 owned and controlled plots (2024 – 1,237 plots) across 32 sites (2024 – 9 sites) during the period with a total contract value of £378.2million (2024 – £103.4 million).
The trading update continued: “While we have been encouraged by a seasonal pick-up in customer enquiries and reservation rates in the early weeks of the current spring selling season, we remain mindful of the sensitivity of customer demand to mortgage affordability and the evolving economic backdrop.”
“The long-term fundamentals of the UK housebuilding industry remain positive, and we welcome the government’s reforms to the planning system to drive a marked increase in the supply of new homes across the country. We remain confident that, given the group’s operational strengths and land bank depth, Bellway remains very well-placed to deliver volume growth in the years ahead to support ongoing value creation for shareholders.”
