Housebuilder Bellway has warned that the housing market recovery has “stalled” over the summer, calling once again for the government to reinstate Help to Buy or a similar scheme to help first-time buyers.
The FTSE 250 housebuilder said that while mortgage rates are lower than last year, the drop hasn’t been as steep as hoped.
Combined with rising unemployment and worries over possible tax increases, buyer confidence has taken a knock.
Founded in 1946 in Newcastle, Bellway’s latest call for Help to Buy highlights the industry’s growing concern that without more targeted buyer support, market momentum could continue to stall, particularly for those trying to buy their first home.
DEMAND-SIDE CONSTRAINTS
“The government needs to address the demand-side constraints facing would-be buyers,” Bellway said.
The Times reports that it’s a message echoed by other big names in the sector, including Barratt Redrow, Persimmon and Taylor Wimpey, who have all called for some form of demand-side stimulus if Labour is serious about hitting its housing delivery targets.
Despite the cautious tone, Bellway’s latest numbers were stronger than expected. Between August 2024 and July 2025, the group delivered 8,749 homes – 1,100 more than last year and ahead of earlier guidance – helped by a solid spring selling season and increased bulk sales to landlords and housing associations. Trading did, however, soften in June and July.
AVERAGE SELLING PRICES
The average selling price rose from £308,000 to £316,000, mostly due to location and product mix rather than wider price inflation.
Revenue climbed 17% to £2.76 billion, and profit margins are set to rise from 10% to around 11%, potentially lifting operating profit slightly above the £300 million analysts had forecast.
Chief executive Jason Honeyman described the results as a “solid performance despite ongoing headwinds” and predicted output could reach 9,200 homes in the year ahead if market conditions remain stable.
RESILIENT PERFORMANCE
Axel Rudolph, Senior Technical Analyst at IG, says: “Bellway’s latest trading update underscores a remarkably resilient performance – with housing revenue jumping 17% and completions rising by over 14% to 8,749 homes, all while maintaining a strong underlying margin that is expected to approach 11%.
“Their forward-looking strategy is particularly compelling: armed with a robust order book and increasingly efficient capital discipline, Bellway is well-positioned to scale to approximately 9,200 homes in FY26, bolstering cash generation and dividends, underpinned by its strategic land bank and the tailwinds from planning reforms.”
