Shares of Newcastle-based house building giant Bellway rose as much as 7% after it published a trading update for the period from February 1 to June 1, 2025, showing “robust trading through the spring selling season.”
Bellway reported “an increase in customer confidence and reservation rates compared to the first half of the financial year.”
The company’s forward order book increased by 7.7% and comprised 5,759 homes at June 1, 2025, up from 5,346 homes a year ago.
The forward order book has a value of £1.650 billion, up from £1.446 billion last year.
“Volume output in financial year 2025 is now expected to be between 8,600 and 8,700 homes (31 July 2024 – 7,654 homes) and we continue to expect the underlying operating margin to approach 11.0% (31 July 2024 – 10.0%),” said Bellway.
“The overall average selling price is now anticipated to be around £315,000 (31 July 2024 – £307,909). The increase from the previous guidance of around £310,000 is mainly due to changes in product mix.
“The group is now fully sold for the current financial year and if market conditions remain stable, Bellway remains well-positioned to deliver cumulative volume growth of 20% in the two years to 31 July 2026.”
Bellway CEO Jason Honeyman said: “Bellway has delivered a solid trading performance, and we are on track to deliver strong growth in volume output and profits in the full financial year. We have a healthy forward order book and outlet opening programme, which will serve as a platform for further growth in FY26.
“I remain confident that, supported by the group’s operational strengths, land bank depth and an increased focus on cash generation and capital efficiency, Bellway can capitalise on the positive fundamentals of our industry and deliver volume growth, improved returns and ongoing value creation for shareholders.”
On current trading, Bellway said: “Trading through the spring selling season has been robust, with good levels of customer demand and improved affordability supporting a sustained increase in private reservations compared to the first half of the financial year. Overall, headline pricing and the level of targeted incentives have remained stable across our regions and build cost inflation was in the low single digits through the period.
“The private reservation rate increased by 5.9% to an average of 161 per week (2024 – 152), with solid trading enhanced by a modest increase in bulk sales. The private reservation rate per outlet per week increased by 8.1% to 0.67 (2024 – 0.62). This included a contribution of 0.06 from bulk sales (2024 – 0.01) and the private reservation rate per outlet per week, excluding bulk sales, of 0.61 was in line with the prior year equivalent (2024 – 0.61). The overall reservation rate, including social homes, rose by 2.1% to 196 per week (2024 – 192) and the cancellation rate remains low at 11% (2024 – 11%).
“The group traded from an average of 242 outlets in the period (2024 – 245), and we continue to expect to operate from an average of around 245 outlets for the full financial year (31 July 2024 – 245).
“The forward order book increased by 7.7% and comprised 5,759 homes at 1 June 2025 (2 June 2024 – 5,346 homes) with a value of £1,650m (2 June 2024 – £1,446m). Given prevailing reservation rates and the anticipated profile of completions in the coming months, we continue to expect a year-on-year increase in the forward order book at 31 July 2025, which will serve as a platform for further volume growth in FY26 …”
In its outlook, Bellway said: “We have been encouraged by the good levels of customer demand in the period and the group is fully sold for the current financial year. Volume output is now expected to be between 8,600 and 8,700 homes (31 July 2024 – 7,654 homes) and, in line with previous guidance, the underlying operating margin is expected to approach 11.0% (31 July 2024 – 10.0%).
“The overall average selling price is now expected to be around £315,000 (31 July 2024 – £307,909). The increase from our previous guidance of around £310,000 is mainly due to changes in product mix, including a contribution from some relatively high value private completions in the final quarter of the current financial year.
“Bellway has a strong outlet opening programme and a healthy forward order book and work-in-progress position and, if market conditions remain stable, we are well-positioned to deliver cumulative volume growth of 20% in the two years to 31 July 2026. The board is confident that, given the strength of the group’s land bank and balance sheet, Bellway is in a strong position to deliver continued volume growth into the longer term.
“As outlined at our Interim Results in March, Bellway is focused on increasing return on capital employed and running a more efficient balance sheet. Our reaffirmed approach to driving greater cash generation and capital efficiency alongside growing volume leaves us well-placed to deliver multi-year growth in both asset turn and margin to deliver a sustained recovery in returns and ongoing value creation for shareholders …”