Bellway Homes boosts housing revenue

Newcastle-headquartered Bellway Homes has boosted its housing revenue by 41%

Bellway Homes
Bellway Homes

Newcastle-headquartered Bellway Homes has boosted its housing revenue by 41%.

The Group has benefited from continued strength in the UK housing market, supported by strong consumer demand, together with more widespread access to affordable mortgage finance which has largely been driven by the availability of Help to Buy.

Results from its trading update released today showed strong growth in both volume and average selling price. This has led to an overall increase in housing revenue to around £690 million in the six months ended 31 January 2014 (2013 - £486.7 million), a rise of over 41%.

Bellway has legally completed the sale of 3,245 homes (2013 - 2,597), an increase of 25% compared with the same period last year. This rate of increase benefited from the strong brought forward order book at 1 August 2013.

As previously reported, the Board expects that the rate of volume growth will be more heavily weighted to the first half of the financial year.

The average selling price of homes sold has risen by 13% to £212,000 (2013 - £187,426), with the sale of a number of particularly high value London apartments contributing to this increase in the period.

The improvement has also resulted from a greater proportion of completions in the south of the country where the average selling price is relatively high, together with a gradual reduction in the use of sales incentives.

Disciplined investment in land and work in progress, augmented by the opening of two new divisions, has enabled Bellway to increase the rate of construction and respond positively to these improving market conditions. This has resulted in significant enhancements to both profitability and shareholder value.

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