Newcastle-based housebuilder Bellway plc has reported “clear signs of improving customer demand in the early weeks of the current spring selling season compared to the subdued trading environment through the autumn.”
In a trading update for the six months ended January 31, 2026, the Newcastle firm said: “While we remain mindful of the sensitivity of customer demand to mortgage affordability and the evolving economic backdrop, we have been encouraged by a pick-up in both reservation rates and leads for our sales teams.
“Supported by our order book and strong outlet opening programme, the group remains on track to deliver full year volume output of around 9,200 homes (31 July 2025 – 8,749).
“We continue to expect the full year average selling price to be around £320,000 (31 July 2025 – £316,412) and the underlying operating margin to be around 11.0% (31 July 2025 – 10.9%).
“We have a high-quality land bank and the operational capacity across the group to support our plans for long-term growth, and the board remains confident that our drive for greater cash generation and capital efficiency will deliver a recovery in returns and ongoing value creation for our shareholders.”
Bellway reported growth in total housing completions to 4,702 homes (2025 – 4,577) at an average selling price of around £322,000 (2025 – £310,581).
“The forward order book at 31 January 2026 comprised 4,442 homes (2025 – 4,726), with a value of £1,241.6m (2025 – £1,311.5m),” said Bellway.
“In line with previous guidance, the group is on track to deliver full year volume output of around 9,200 homes (31 July 2025 – 8,749).
“Reflecting the strength of our land bank and drive for enhanced capital efficiency, we have continued with a disciplined approach to land acquisition and contracted to purchase 4,721 owned and controlled plots during the period (2025 – 5,246).
“The £150m share buyback launched on 14 October 2025 is progressing well, with 1.76m shares purchased at a cost of around £48m during the period.
“Bellway has a well-capitalised balance sheet with modest period-end net debt of £72m (2025 – net debt of £8.0m) and adjusted gearing, including land creditors, remains low at around 10% (2025 – 8.5%). This is in-line with our approach to utilise an efficient capital structure, as outlined at our FY25 results.”
Bellway CEO Jason Honeyman said: “Bellway has delivered a robust first half performance in a challenging market.
“Notwithstanding the current industry headwinds, our forward order book and strong outlet opening programme leave us well-placed to meet our targeted growth in volume output for the full year, and I remain confident that we can drive increased cash generation and shareholder returns in FY26 and beyond.
“We welcome the Government’s reforms to the planning system, however, to make meaningful headway against its ambitious housing targets, the Government must also make an early commitment to ease demand-side pressures by introducing essential financial support for first-time buyers.”