Bellway on track for annual home sales to reach 10,000

·1 min read
Bellway has seen high demand for new homes (Bellway)
Bellway has seen high demand for new homes (Bellway)

Bellway is on track to complete 10,000 homes sales this year and it predicts prices will rise further, as buyer demand during the pandemic continues to look high.

Completions in the 12 months to July are set to be above the 7,522 sold a year earlier, but below 10,892 completed in the year to July 2019.

Bellway said demand for larger, higher value properties “remains encouraging”. Buyer activity has been supported by the extended stamp duty holiday. In addition, a new mortgage guarantee scheme was recently launched to help people with a 5% deposit get on the property ladder.

The average selling price for the current financial year at Bellway is expected to be in excess of £300,000, which is ahead of previous guidance.

But the firm anticipates prices will moderate in the year after, due to ongoing product mix changes, such as some smaller homes being created for example.

Chief executive Jason Honeyman said: “We have continued our front-footed approach to land acquisition, making a record investment in new sites, thereby enabling us to grow sales outlets and meet the ongoing demand for new homes in the years ahead. This disciplined investment approach, together with our strong balance sheet, ensures that Bellway is in a good position to continue its long-term growth strategy."

Glynis Johnson, an analyst at Jefferies, said: “The group reports trading from 266 outlets, a little down on the 276 of the last update. As such the 'record' investment in land with 15,982 plots contracted (vs its average of 10K for the last 2 years) is important to give confidence in sustained growth.”

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