Revenue fell 29.6% to £1.3bn in the six-month period, with pre-tax profit falling by 61.6% to £117.4m
Bellway boss Jason Honeyman said he’s been “encouraged” by the fall in mortgage rates, making it more affordable for people to buy homes.
The business is on target to build around 7,500 homes this year, after scaling back from nearly 11,000 the year before. Despite a tough period for housebuilders since December 2021 when the Bank of England raised interest rates from 0.1% to 5.25%, lenders are starting to reduce the interest rates they charge mortgage borrowers, with anticipation of the Bank potentially reducing rates again later in the year.
“Although the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates throughout the first half has helped to ease affordability constraints and we have been encouraged by the improvement in reservations since the start of the new calendar year,” Mr Honeyman said.
Revenue fell 29.6% to £1.3bn in the six-month period, with pre-tax profit falling by 61.6% to £117.4m. The average selling price of Bellway’s homes was £309,278, down from £316,929 a year earlier. The business predicts the average selling price will be £295,000 for the full financial year.
Mr Honeyman expressed his optimism for the UK housebuilding industry despite current challenges. “Overall, the long-term fundamentals of the UK housebuilding industry remain attractive, given the shortage of energy efficient and affordable homes across the country,” he stated.
“We remain confident that the group’s robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully navigate changing market conditions and capitalise on future growth opportunities.”
In other news, Vistry, another housebuilding company, announced a partnership agreement with housing provider Abri to build 1,500 new homes in Arundel, West Sussex.
