Bellway expects housebuilding volumes to fall in the coming year despite reporting higher profits and a double-digit increase in completions, as affordability pressures continue to weigh on buyer demand.
The housebuilder completed 9,695 homes in the year to 31 July 2026, an increase of 10.8% on the previous year’s 8,749. Revenue rose 13.6% to £3.16bn, while reported pre-tax profit increased from £221.9m to £270.2m.
However, Bellway is targeting between 9,000 and 9,400 completions in the current financial year, reflecting a weaker forward order book and continued uncertainty across the housing market.
The company also expects its underlying operating margin to fall further as build cost inflation, sales incentives and a greater proportion of bulk sales put pressure on profitability.
DEMAND PRESSURES
Bellway says customer demand remains constrained by economic uncertainty and affordability challenges, with mortgage interest rates above their levels a year earlier.
In the nine weeks from 1 August, its private reservation rate, excluding bulk sales, fell to 0.45 per outlet per week, compared with 0.48 during the equivalent period last year.
The forward order book at 2 October stood at 4,981 homes worth £1.44bn, down from 5,285 homes valued at £1.53bn a year earlier.
Bellway expects to increase its reliance on bulk sales during the current financial year to support completions and cash generation.
Despite the challenging outlook, the company ended July with net cash of £157.7m, compared with £41.8m a year earlier, and has announced a £150m share buyback programme for FY27.
FIRST-TIME BUYERS
Jason Honeyman (main picture), Chief Executive of Bellway, says the company has delivered a robust performance despite continued challenges across the housing market.
He says: “Bellway has delivered a robust performance, growing both volume output and profits despite ongoing challenges across the housing market.
“Our continued focus on operational improvement and capital efficiency has enhanced resilience, driven a significant 36% increase in adjusted operating cashflow and supported higher shareholder returns.”
Honeyman also welcomed the government’s proposed Your First Home scheme, which is intended to improve access to homeownership for first-time buyers.
“The UK continues to face a substantial shortage of new homes.”
He says: “The UK continues to face a substantial shortage of new homes, while affordability remains a major barrier for many prospective buyers.
“We therefore welcome the Government’s proposed Your First Home scheme, which has the potential to provide significant support for first-time buyers.
“We look forward to further detail on the scheme and to engaging with Government on its design and implementation.”
Bellway says its land bank, financial strength and operational capacity leave it well positioned to increase housing delivery when market conditions improve.
The group had a total land bank of 94,666 plots at the end of July, including 45,992 owned and controlled plots.
