Bellway cheers buyer confidence as profits rise

A housebuilder has hailed stronger buyer sentiment after increased demand boosted its financial performance.

Bellway says lower mortgage rates laid the foundations for greater sales in the half-year to January 31.

According to latest results, the firm saw underlying operating profit rise 11.9 per cent to £156.6 million as completions increased by the same margin to 4577.

Pre-tax profit was nearly 20 per cent higher at £140.8 million, with revenue increasing 12.3 per cent to more than £1.4 billion.

And bosses at the Newcastle-headquartered builder, which has housing estates across the UK, say the momentum – allied to a larger land bank of more than 95,500 plots – leaves it primed to go well beyond previous annual sales of 7654.

Jason Honeyman, group chief executive, said: “We have delivered a strong first-half performance, with good growth in volume output and profits.

“Trading was ahead of the comparative period, driven by lower mortgage interest rates and an improvement in consumer confidence.

“Underlying demand is healthy, and we have been encouraged by the improvement in customer enquiries and reservations since the start of the new calendar year.

“We remain on track to deliver volume output of at least 8500 homes in the full financial year.

“Given our operational strengths and land bank depth, we remain very well-positioned to capitalise on the positive long-term fundamentals of the UK housebuilding industry.”

Bellway’s developments include Meadowcroft, in Longframlington, Northumberland, and Hartwell Park, in Hartlepool.

Its national portfolio also includes Clifford Gardens, in Skipton, North Yorkshire; Somerford Gate, in Congleton, Cheshire; Roman Gate, in Melton Mowbray, Leicestershire; and Cavendish Grove, in Raynes Park, London.

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