Bellway has reported an increase in completions and profit for the last financial year despite experiencing “softer” trading in the final quarter which has since continued.
The housebuilder announced that it was planning to return £150million back to shareholders through a buyback programme.
For the year to 31 July 2025, Bellway saw pre-tax profit rise to £222million, up 21% on the previous year, while completions increased to 8,749, up by 14%. The firm’s turnover also rose to £2.8billion, an increase of 17%.
However, the trading update noted that the housebuilder had experienced “continuation of weak consumer sentiment” in the new financial year, which started in late spring.
The announcement said that “customer demand had been affected by ongoing affordability constraints and uncertainties about potential taxation changes in the government’s Budget in November.”
Chief executive of Bellway, Jason Honeyman, said: “While we face some near-term market challenges, we have a high-quality land bank, strong balance sheet and the operational capacity to capitalise on the positive long-term fundamentals of our industry.
“Combined with our refreshed and disciplined approach to capital allocation, I am confident that we can drive increased volume output, cash generation and shareholder returns in FY26 and beyond.”
Looking forward, Bellway said that it predicts its average selling price to rise to £320,000 in the 2026 financial year, up from £316,412. Its forward order book also increased by 2% to 5,285 homes.
Julie Palmer, partner at Begbies Traynor, commented: “Bellway has once again delivered a strong set of results in what remains a tricky market, with double-digit growth in completions and profits underlining the group’s resilience. Encouragingly, a return to net cash, a solid balance sheet and an improved reservation rate show that demand from its customer base is holding up, even as affordability pressures and planning delays continue to weigh on activity.”
“Management’s focus on disciplined cost control and capital efficiency seems to be paying off, with margins improving and a £150million share buyback programme further evidence of the success of this strategy. The refreshed capital allocation framework and increased dividend also signal the business’ growing confidence in its ability to continue to outperform.”
“The market is still waiting for clearer signals on interest rates and housing policy, but easing inflation and continued talk of planning reform and attempts to iron out kinks and blockages in the buying process ahead of the Autumn Budget could offer some welcome relief, with Bellway looking among the better-placed players to benefit when the cycle turns.”
