"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"
- Jason Honeyman - Bellway
Bellway has said that during the period from February 1 to June 2 2024, its private reservation rate per outlet per week rose 6.9% against the equivalent period in 2023 to 0.62. The rate averaged 152 per week compared to last year’s 139.
According to its most recent update, the firm traded from an average of 245 outlets during the period, a 2.5% improvement on 2023, which it said was in line with its expectations.
The business said customer demand had strengthened due to mortgage interest rates and inflation stabilising. Bellway said: “Overall, the backdrop of market stability has led to headline pricing and the level of targeted incentives remaining stable across our regions."
Accordingly, the housebuilder’s forward order book improved from 4,411 homes at the start of its current financial year (August 1 2023) to 5,346 homes as of June 2 2024 (June 4 2023 – 6,172 homes), at a value of £1,446 million against 2023’s £1,710 million.
The firm is on track to deliver full-year volume of around 7,500 homes as previously stated. This is notably down on the 10,945 homes achieved during FY 2023. Bellway said it was poised to return to growth in its 2025 financial year, given its “healthy” forward order book, outlet opening position, prevailing reservation rates and anticipated profile of completions.
However, for the current year (FY 2024), it expects a reduction in underlying operating margin of “at least” 600 basis points against 2023’s 16%. For FY 2024, Bellway’s average selling price is likely to be around £305,000 (July 31 2023 – £310,306). This is up from previous guidance of £295,000, primarily due to changes in product mix.
Bellway noted the improving outlook but said it remained “alert” to challenges to customer demand and cost inflation, acknowledging a “temporary impact” to trading during the run-up to the general election.
Jason Honeyman, Bellway’s group CEO, said: “Bellway has delivered a solid trading performance supported by improved affordability and a seasonal uplift through the spring, and we remain on track to deliver full-year volume output of around 7,500 homes.
“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.”
