Newcastle-based housebuilder Bellway plc said its housing revenue increased by more than 13% to £3.14 billion for the year ended July 31, 2026, and said it expects adjusted operating profit to rise about 5.4 % to £320 million.
However, in a trading update for the year, Bellway’s CEO urged the UK government to stimulate demand for housing with “an immediate reduction in Stamp Duty alongside a Government-backed deposit support scheme for first-time buyers …”
The Newcastle firm said in its update: “The group entered FY26 with a strong forward order book and, despite subdued trading throughout most of the year, delivered a robust performance with 10.8% growth in total housing completions to 9,695 homes (2025 – 8,749).
“This was in excess of our previously guided range of 9,300 – 9,500 homes, with the outperformance primarily driven by a strong conversion from our bulk sales pipeline.
“The proportion of private completions was 79% of the total (2025 – 79%), and the overall average selling price rose to around £324,000 (2025 – £316,412). The increase in the average selling price was driven by geographic and mix changes, with no underlying house price inflation. Incentive usage averaged around 5% (2025 – 4.1%).
“Housing revenue increased by over 13% to £3.14bn (2025 – £2,768.3m) and we expect to report an adjusted operating profit of around £320m (2025 – £303.5m). Due to the increased proportion of lower margin bulk sales in the year, the adjusted operating margin is expected to be around 10%5 (2025 – 10.9%).
“Similar to the prior financial year, customer demand throughout the autumn was impacted by uncertainty ahead of the Government’s Budget. While we saw an improvement in trading in the early part of the spring selling season, there has been a moderation in customer demand since April in response to the rise in mortgage rates.
“The group opened 59 new outlets and traded from an average of 238 outlets during the year (2025 – 246), in line with our expectations, with a closing position of 253 outlets at 31 July 2026 (2025 – 249).
“The private reservation rate decreased by 5.8% to an average of 131 per week (2025 – 139). In line with our strategy, bulk sales made a good contribution during the year, with the private reservation rate per outlet per week at 0.55 (2025 – 0.57).
“The private reservation rate excluding bulk sales was 0.49 (2025 – 0.52). The overall reservation rate, including social homes, was 3.5% lower at 165 per week (2025 – 171) and the cancellation rate remained low at 12% (2025 – 13%).
“Driven by the strong increase in volume output and lower reservation rates during the year, the forward order book reduced to 4,206 homes at 31 July 2026 (2025 – 5,307 homes) with a value of £1,197.2m (2025 – £1,519.4m).”
Bellway CEO Jason Honeyman said: “Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry.
“Our sharp focus on operational improvement and drive for capital efficiency has provided resilience and supported a strong increase in cash generation and shareholder returns.
“The board remains confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities.
“However, with the near-term outlook remaining uncertain, we call on the Government to act now to improve access to housing across all tenures, both by helping first-time buyers onto the property ladder and supporting the delivery of affordable and social housing for those who need it most.
“In order to ease affordability constraints and stimulate demand, an immediate reduction in Stamp Duty alongside a Government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country.”