Bellway's sales increase in '˜robust' residential property market

File photo of a Bellway development Photo: Rui Vieira/PA Wire

Housebuilder Bellway said the residential property market remained 'robust' last year as it reported a healthy increase in sales, despite uncertain economic conditions.

In a trading update, the Newcastle-based group said that housing revenue is expected to increase by more than 13% to £2.5 billion in the year ended July 31.

Demand since the general election has “remained strong”, with customer appetite to purchase new homes so far “unaffected by any uncertainty in the wider economy”.

Completions were up 10.6% to 9,644, and Bellway added that the value of its forward order book rose 16% to £1.3 billion.

Boss Ted Ayres said: “A focus on delivering growth, set against a backdrop of favourable market conditions, has helped Bellway to surpass last year’s record in respect of both volume and operating margin and further increase the group’s contribution to the supply of much-needed new homes.

“This excellent trading performance, together with additional investment in attractive land opportunities, ensures that Bellway is well placed to continue its disciplined growth strategy.”

Bellway added that the housing market continues to be supported by good availability of affordable mortgages and the Government’s Help to Buy scheme.

Demand remains strong across all regions, Bellway said, and the average price for its homes was £260,000.

Bellway also said land investment had risen, with the group contracted to acquire 11,613 plots, up from 9,555 in 2016.