Bellway's profits rise as house buyers shrug off Brexit uncertainty

Housebuilder Bellway has posted a healthy rise in half-year profits as buyers brushed aside economic uncertainty unleashed by the Brexit vote.

Tuesday, 21st March 2017, 8:30 am
Updated Friday, 24th March 2017, 11:01 am
House buyers have brushed off uncertainty over Brexit

The Newcastle-based group said pre-tax profits rose 9.3% to £247.6 million in the six months ended January 31, while revenue was up 5.9% to £1.1 billion.

Completions increased 6.5% to a record 4,462 in the period, with the average selling price of its homes expected to rise to around £260,000 in 2017, up from £252,000 last year.

Chief executive Ted Ayres said: “Customer demand for new homes remains strong, reinforced by a national shortage of housing in the UK and further supported by high employment, good mortgage availability and low interest rates.

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“In addition, the Government’s Help to Buy shared equity scheme continues to support volume growth in the new build sector, providing a popular and cost-effective source of finance for consumers.

“With such strong demand, the wider economic uncertainty following the EU referendum has not had any meaningful effect on purchasers’ willingness to acquire a Bellway property in those parts of the country where the group operates.”

The firm said customer demand remains strong, resulting in the reservation rate increasing by 6.4% to 166 sales per week.

Bellway added that the number of homes sold for the full year is expected to rise by “at least 5%”.