Housing recovery boosts Bellway Homes

Housebuilder Bellway has sold a record number of homes in the past year, benefiting from increasing demand and the favourable mortgage terms available.

In its pre-close trading update issued today, the Company announced a record number of homes sold with a 13.2% increase in the number of housing completions to 7,752 from last year’s figure of 6,851.

Bellway also saw its forward order book increase from last year’s total of 4,363 to 4,568 homes, with a value of £1,087.9M, compared to 2014’s figures of £924.3M.

The Group has contracted to purchase 88 sites during the year, with a record outlay of £620M being spent on land opportunities in the past year.

The ‘Help to Buy’ scheme’s extension to 2020 in England is cited as providing stability and visibility when determining future land purchase opportunities.

Bellway have also opened new division in Kent, which it is envisaged will help drive plans for future growth and allow the Group to deliver new homes in areas of high demand.

In the trading update, Bellway said: “Demand for new homes has remained strong throughout the year, supported by more widely available and increasingly competitive mortgage finance. The Bank of England base rate remains at a historic low and notwithstanding the possibility of an interest rate rise, new homes remain a very attractive and affordable option for purchasers.”

The Group saw an increase from 148 to 153 on average reservations taken per week, a rise of 3%.

Chief executive Ted Ayres said: “The Group has continued to trade well, against a backdrop of favourable market conditions, delivering a record number of legal completions, whilst further adding to an already strong forward order book.

“We have made a substantial investment in attractive land opportunities and the Group has the balance sheet and operational capability to invest further, thereby enabling Bellway to continue delivering additional and much needed new homes.”

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