Bellway (BWY) delivered a strong trading statement for the six months to 31 January 2018, with turnover expected to have risen by 14 per cent to around £1.3bn. Completions were up 6.3 per cent at 4,741 for the housebuilder, and in contrast to the sluggish market in existing housing, average selling prices rose by 7.8 per cent to a record £276,000.
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The appetite for new homes shows no signs of abating, with a 7.2 per cent rise in weekly reservation rates contributing to a 15.7 per cent rise in the forward order book to £1.3bn. Bellway has also replenished its land bank, contracting to acquire 6,726 plots, with an expected gross margin of over 24 per cent, based on current selling prices.
