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Bellway beats Brexit blues

Demand for new homes shows no signs of abating.
June 15, 2017

Housebuilder Bellway (BWY) continued to shrug off the effects of last year's referendum vote, recording a 13 per cent rise in sales demand in the period 1 February to 4 June.

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As a result of this, completions for the full year to 31 July 2017 are expected to be up around 10 per cent at nearer 9,500. A rise in average selling prices from £252,000 to around £260,000 and benign land prices are expected to push operating margins up in excess of 22 per cent. Land purchases included 10,250 plots, with terms agreed on a further 5,500, and Bellway now has all the consented land to meet its growth targets for the year to July 2018.

And while the outcome of the general election has introduced an element of uncertainty, increasing the supply of housing has broad cross-party support.