Bellway ‘on track’ to hit 7,500-home building target

Bellway is “on track” to deliver 7,500 homes this financial year, with improved affordability having yielded a strong spring selling season. 

In a trading update for the period from 1 February to 2 June, the FTSE 250 housebuilder reported that it was now fully sold for the current financial year and said it it well-positioned to return to growth” in the financial year 2025. 

Trading through the spring selling seson has been “robust”, according to the update, with a sustained improvement in private reservations compared to the first half of the finnacnial year. 

A moderation of mortgage interest rates and consumer price inflation, as well as an increase of wages, have been major drivers of this trend. 

The firm’s private reservation rate per outlet per week of 0.62 was 6.9% up on the prior year equivalent. 

Its forward order book has also increased from 4,411 homes at the start of the current financial year, to 5,346 homes at 2 June. 

Jason Honeyman, group chief executive, said: “Bellway has delivered a solid trading performance supported by improved affordability and a seasonal uplift through the spring. 

“We have been encouraged by ongoing healthy levels of customer interest and combined with the strength of our outlet opening programme, we continue to expect a year-on-year increase in the forward order book at 31 July 2024.   

>> See also: Bellway ‘encouraged’ by year’s start despite drop in profit 

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“As a result, Bellway remains in a strong position to return to growth in financial year 2025.  

“We reiterate our confidence that the Group’s robust balance sheet and operational strength, combined with the depth of our land bank, will enable Bellway to successfully capitalise on future growth opportunities.” 

The overall average selling price for this financial year is now anticipated to be around £305,000, up slightly from the previous guidance of £295,000, which the firm attributed to changes in its product mix. 

Bellway’s next scheduled trading update is on 9 August.