Thomas Gray Limited (Registered in England & Wales No. 07839720) of Crest House,
53 Station Road, Egham, Surrey, TW20 9LG
© 2020 – All Rights Are Reserved
Bellway has announced the completion of 4,092 homes in the six months leading up to January 31, 2024. This figure represents a 28% decrease compared to the same period in the previous year, where 5,695 homes were completed. The average selling price for these homes stood at £309,300, slightly lower than the figure of £316,929 recorded in 2023. Looking ahead, Bellway anticipates completing approximately 7,500 homes for the full year, a significant decline from the 10,945 homes completed in the preceding year.
Private reservations growing
In its recent trading update, Bellway reported housing revenue exceeding £1.25 billion, aligning with its expectations but showing a decrease from the previous year’s figure of £1.8049 billion. Encouragingly, the private reservation rate saw a notable increase of 15.4% to 105 per week, compared to 91 in 2023. This translates to a private reservation rate per outlet per week of 0.43, up from 0.38 in the previous year. Overall, the reservation rate experienced a slight uptick to 140 per week from 138 in 2023.
Bellway attributed this positive trend partly to the reduction in mortgage interest rates observed throughout the first half of the year. This led to heightened levels of customer enquiries during the typically quieter winter trading period and contributed to an improved private reservation rate in January, reaching 0.59 per outlet per week compared to 0.45 in January 2023. The company expanded its reach by opening 34 new outlets during the six-month period and plans to open more than 40 additional outlets in the latter half of the financial year.
As of January 31, Bellway’s forward order book comprised 3,970 homes with a value of £1,012.5 million, indicating a decrease from the previous year’s figures of 5,108 homes and £1,386.8 million, respectively. However, the company remains optimistic about its prospects, stating that sustained reservation rates and stable market conditions could pave the way for a return to growth in the financial year 2025.
Bellway’s Group Chief Executive Jason Honeyman expressed satisfaction with the company’s performance despite challenging trading conditions. He highlighted the easing of affordability constraints due to the gradual reduction in mortgage interest rates and noted an encouraging uptick in customer leads and reservations since the beginning of the year.
Jason Honeyman, Group Chief Executive, said: “Bellway has delivered another resilient performance in a period of challenging trading conditions.
While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year. “
Bellways Outlook
It mirrors that of other industry players like Barratt and Redrow, both of which reported a decline in revenue year-on-year in the first half of the year but noted a promising market outlook for the current year. Barratt completed 6,171 homes in the half-year period ending December 31, 2023, down from 8,626 in 2022, with a net private reservation rate per active outlet per average week of 0.60 in January, compared to 0.49 in 2023.
From board level appointments to middle management hires…
Explore our latest roles…
Housing | Construction | Affordable Housing | Retirement Living | Real Estate | Fit Out |
Build to Rent
