Highlights

  • Housing completions rose to 4,702, with an average selling price of GBP 322,000.
  • Forward order book valued at GBP 1.24bn, with over 40 new outlets planned.
  • Land acquisitions continued with 4,721 plots contracted, and share buyback progressing with GBP 48m spent.

Bellway plc (LSE:BWY) has reported a trading update for the six months ending 31 January 2026, ahead of its interim results due on 24 March 2026. The update highlights moderate growth in housing completions, a rising average selling price, and continued activity in land acquisitions and share buybacks. Following this update, Jefferies and Investec have issued buy ratings, with target prices of GBX 3,461 and GBX 3,100, respectively.

Housing Completions and Sales Performance

Bellway completed 4,702 homes in the first half of FY26, an increase from 4,577 in the same period last year. The average selling price for homes rose to approximately GBP 322,000, up from GBP 310,581 in 2025, driven by geographic and mix adjustments across the portfolio. Housing revenue increased by more than 6% to GBP 1.51bn compared to GBP 1.42bn in the prior year.

The private reservation rate per outlet, including bulk sales, was 0.47 (2025 – 0.51), while excluding bulk sales it was 0.46 (2025 – 0.45). The overall cancellation rate remained low at 13%, down slightly from 14% in the previous period.

Forward Order Book and Outlets

At 31 January 2026, Bellway’s forward order book stood at 4,442 homes, valued at GBP 1,241.6m, slightly lower than last year’s 4,726 homes valued at GBP 1,311.5m. The company maintained an average of 244 operational outlets during the period, with a planned expansion of over 40 new outlets in the second half of FY26, aiming for an average of around 245 outlets for the full year.

Land Investment and Capital Allocation

Bellway contracted to purchase 4,721 plots in the first half, compared to 5,246 plots in 2025, with a total contract value of GBP 227m. A large site in Dunfermline, comprising around 1,900 plots, will support growth in Scotland. Additionally, the strategic land bank was further strengthened through 11 new option agreements and planning applications for 29 sites, totaling 3,900 plots.

The company’s GBP 150m share buyback is progressing, with 1.76m shares repurchased at a cost of GBP 48m. Net debt remained modest at GBP 72m, and adjusted gearing stayed low at around 10%. The dividend policy continues with underlying cover expected at approximately 2.5 times.

Outlook

Early signs indicate an improvement in customer demand compared with the subdued autumn trading period. Bellway expects to deliver approximately 9,200 homes for the full year, with the average selling price around GBP 320,000 and an underlying operating margin near 11%. The company’s operational capacity and high-quality land bank provide the framework to sustain long-term growth.

Bellway’s latest trading update underscores steady progress in housing completions, revenue, and forward order book value, supported by disciplined land acquisition and a structured capital allocation approach. Broker support through buy ratings highlights market confidence in the company’s outlook as it moves toward full-year results in March.

BWY shares were trading at GBX 2,646.00 per share at the time of writing on 10 February 2026.

FAQ

Q1: What is Bellway’s expected full-year housing completion target?
A1: Bellway expects to complete around 9,200 homes for the full financial year ending July 2026.

Q2: How much has Bellway spent on its share buyback so far?
A2: The Group has purchased 1.76m shares at a total cost of approximately GBP 48m from the GBP 150m share buyback programme.

Q3: What is the current value of Bellway’s forward order book?
A3: As of 31 January 2026, the forward order book comprised 4,442 homes, valued at GBP 1,241.6m.