Bellway sticks to profit target in tough market

A housebuilder has hailed its hardiness in “an increasingly challenging market” after reiterating financial targets.

Bellway says it expects to register annual underlying operating profit of between £320 million and £330 million.

It also expects to build between 9300 and 9500 homes over its 2026 financial year to the end of July, which would represent a 8750 rise on the previous 12 months.

The Newcastle-headquartered firm’s stance came despite a fall in private reservations from 161 to 151 a week between February 1 and May 29 as Iran conflict-induced mortgage rate rises stymied buyer appetite.

It also cited “upward pressure” on building material bills from higher fuel and energy input costs.

However, speaking in a trading update, chief executive Jason Honeyman said the firm – which has developments across England, Scotland and Wales – is on target to meet profit expectations.

He said: “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 financial year 2026 underlying operating profit within the previously guided range of £320 million to £330 million.

“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.”

Bellway’s developments include Meadowcroft, in Longframlington, Northumberland, and The Old Foundry, in Wolsingham, County Durham.

Its national portfolio includes Dalmore Grange, in Midlothian; Bishops Gate, in Beverley, East Yorkshire; Lucas Green, in Solihull; Tattenhoe Meadows, in Milton Keynes; and Parc Mawr, in Swansea.

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