Bellway 'will rebuild' after challenging period

A housing developer has vowed to rebuild its fortunes after market turbulence sent demand tumbling.

Bellway says planned Government reform and recovering buyer sentiment leaves it poised to “deliver a material increase” in sales over the next year.

The Newcastle-headquartered firm saw total completions fall 30 per cent to 7654 in the 12 months to July 31 as higher mortgage rates knocked buyer confidence.

The decline also pushed total revenue down from £3.4 billion to £2.3 billion, with total operating profit 57.9 per cent worse off at £212.8 million.

However, bosses say a rise in demand, driven by an easing of “affordability pressures”, and Labour’s blueprint to revise the planning system, leave it well placed to grow, with at least 8500 sales slated for its current financial period.

Jason Honeyman, chief executive at the builder, which is working on developments across the UK, said: “We have delivered another resilient performance despite challenging operating conditions. 

“While a lower order book at the beginning of the financial year drove the reduction in housing completions, customer demand through the second half benefited from a moderation in mortgage interest rates.

“The combination of these improving trading conditions and our strong outlet opening programme has generated a healthy increase in the year-end order book.”

He added: “We welcome the Government's plans to reform the planning system, which is expected to unlock land supply and support an increase in new housing across the country. 

“Against this improving backdrop, and if market conditions remain stable, our operational strength and robust balance sheet, combined with the depth and quality of our land bank, provide an excellent platform to deliver strong multi-year growth.”

Bellway is working on the Meadowcroft development, in Longframlington, Northumberland, and Modello, in Gateshead.

Its national portfolio also includes Clifford Gardens, in Skipton, North Yorkshire; Stoughton Park, in Oadby, Leicestershire; Fox Mill Gardens, in Willand, Devon; and King George's Vale, in Cuffley, Hertfordshire.

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