“Headwinds” set to hit Bellway completions

Bellway says it remains on track to deliver around 11,000 homes in the full year to the end of July, similar to last year’s total of 11,198. However industry “headwinds” including higher mortgage rates and planning delays are likely to mean a drop in volume output next financial year.

Reporting its half year results to the end of January, the housebuilder saw profit before tax slip 4.6% year on year to £312.1 million on slightly higher revenue (£1,809.3 million, up 1.6%). Margin was 17.6%, down from 18.7%.

The firm completed of 5,695 homes in the period, almost exactly the same as last year’s 5,694 homes, and saw a 1.6% increase in the overall average selling price to £316,929 (2022 - £311,849).

Bellway group chief executive Jason Honeyman said: "Bellway has delivered another strong performance, notwithstanding the challenging operating and trading conditions in the period. We have been encouraged by the moderate, yet sustained improvement in reservations since the start of January 2023, and the group remains on track to deliver volume output of around 11,000 homes in the full financial year (31 July 2022 - 11,198 homes).”

The firm said that increasing mortgage rates, particularly during the autumn, and …