​Bellway increases housing revenue 3.5% for first half of year

Bellway has increased its housing turnover 3.5% as strong market demand led to a record number of completions.

The housebuilder, in a trading update covering the six months to 31 January, reported housing revenue of £1.78bn up from £1.71bn the previous year.

Bellway completed 5,694 new homes, up slightly on the 5,656 completed during the same period the previous year. It said it is on track to boost its output for the full year by 10%. Completions totalled 10,138 in the previous full year.

Its average selling price rose 2.8% to £311,800, which it says exceeds previous expectations.

Bellway’s said it now expects its operating profit margin for the full year to be above 18%, compared to 17% the previous year.

Jason Honeyman, chief executive at Bellway, said: “Bellway has delivered a strong first half performance, achieving record volume output and housing revenue, notwithstanding the wider economic challenges presented by labour, material and fuel shortages and COVID-19 related absenteeism.”

The housebuilders order book stands at 6,628 homes, up from 5,889 the previous year and has a value of £1.94bn, up from £1.63bn.

Bellway said it had set aside £165m to deal with legacy building safety issues after reviewing its developments.

See also>> Bellway picks former Redrow boss as new chair

See also>> Housebuilder shares tank on announcement of £4bn cladding levy

Bellway also said it welcomed the government’s “attempt to restore a more proportionate approach towards fire remediation strategies and we will engage positively with them to help establish a workable, industrywide solution.”

It said: “We will continue our proactive and responsible approach and we share the Government’s general sentiment that the costs of correcting historical fire safety defects should not be borne by residents.”

This follows the news yesterday that trade body the Home Builders Federation is taking legal advice following housing secretary Michael Gove’s threat to step builders trading if they do not pay into a £4bn fund for fire safety remediation works.

Bellway’s full interim results are due to be published on 29 March.