Bellway shares up amid ‘robust market conditions’

Shares of Newcastle-based house builder Bellway plc rose on Wednesday after it issued a trading statement saying it enjoyed a 13% increase in its reservation rate between February 1 and June 4 and that full-year housing completions to July 31, 2017, are expected to increase by nearly 10%.

The firm’s share price rose as much as 6% to about 3,024p, giving it a current stock market value of roughly £3.7 billion.

Looking ahead, Bellway said its total order book at June 4, 2017, of which 70% is contracted, stood at 5,819 homes and includes reservations with a value of £900 million due for completion beyond July 31, 2017.

Bellway chief executive Ted Ayres said: “Robust market conditions, together with a clear operational focus, is enabling Bellway to continue increasing its contribution to the supply of much needed new homes.”

Bellway attributed the positivity of the housing market to low unemployment, good availability of affordable mortgage finance and the continued provision of the Help to Buy programme.

The company said: “Customer demand for new homes remains strong across all regions and has increased throughout Spring, in accordance with the usual seasonal trend, unabated by any uncertainty in the weeks preceding the recent General Election.”