Bellway has reported a reduced rate of reservations and an “uncertain” outlook, but says it remains on track to reach its operating profit expectations.
In a trading update for the period from 1 February to 29 May, Bellway said that it had seen customer demand lessen in recent weeks, with its private reservation rate falling by 6.2% to an average of 151 per week in the face of rising mortgage rates. This followed a significant improvement in trading in early spring compared to autumn 2025.
However, this has been mitigated by a forward order book of 5,345 homes by the end of the period, despite being slightly down on the 5,759 homes as of 1 June 2025. Bellway maintained that it still expects to complete between 9,300 and 9,500 homes for the full year.
The housebuilder reported that its overall reservation rate had fallen by 5.1% during the period, but said that its current reservation rates were generally outperforming those in the first half of the year. Its private reservation rate per outlet per week, excluding bulk sales, was 0.50, down from 0.61 the previous year.
In its trading update, Bellway said that it had experienced “upward pressure” on material costs as fuel and energy costs rose, with supply chain partners increasing their prices as a result. The housebuilder says that it is actively managing cost pressures through “a combination of disciplined procurement, the introduction of new standard house types and close control of site production and overheads.”
Bellway says it will have better visibility on overall build cost inflation for FY27 when it reports later in the year.
The Group traded from an average of 233 outlets during the period, down from 242 the previous year, and it expects to operate from an average of around 240 for the full financial year. Bellway expects to open over 40 new outlets in the second half of the financial year, followed by a “strong programme” of opening in FY27.
Jason Honeyman, chief executive of Bellway, commented: “Bellway continues to perform robustly in an increasingly challenging market, with customer demand having moderated in recent weeks, after a positive start to the spring selling season. Notwithstanding this, and supported by our forward order book, we are on track to deliver FY26 underlying operating profit within the previously guided range of £320million – £330million.”
“The outlook beyond the current financial year remains uncertain, reflecting ongoing geopolitical tensions in the Middle East and a less predictable domestic political environment. Against this backdrop our clear focus on self-help and drive for capital efficiency provides resilience while supporting our strategy to increase cash generation and shareholder returns.”
The trading update continued: “Our industry continues to face challenging headwinds, increasing the risk of a more prolonged period of softer customer demand alongside renewed inflationary pressure on build costs. In response, we are maintaining a sharp focus on the monetisation of our well-invested land bank and work-in-progress position through FY26 and beyond to support improvements in asset turn and cash generation.”
