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Highlights

 

  • Bellway reported an 8.1% year-on-year increase in private reservation rate per outlet per week, including bulk sales
  • The company's forward order book rose by 7.7% to 5,759 homes as of 1 June 2025.
  • Bellway expects to complete between 8,600 and 8,700 homes in FY25, up from 7,654 in the previous year

UK housebuilder Bellway p.l.c. (LSE:BWY) is one of the UK's largest housebuilders which focuses on constructing residential properties across England, Scotland, and Wales.

The company has released a trading update for the period from 1 February to 1 June 2025, indicating improved customer confidence and higher reservation activity compared to the first half of the financial year. The update reflects relatively steady market conditions and the continuation of the Group’s land acquisition strategy.

The company recorded a private reservation rate of 0.61 per outlet per week (excluding bulk sales), in line with the previous year. Including bulk sales, the figure rose by 8.1% YoY to 0.67 per outlet per week. The average number of private reservations per week increased to 161, with total reservations including social homes reaching 196 per week. The cancellation rate remained unchanged at 11%.

Bellway reported trading from an average of 242 outlets during the period, marginally down from 245 a year earlier. The forward order book stood at 5,759 homes as of 1 June 2025, up 7.7% YoY from 5,346 homes a year ago, with a total value of approximately GBP 1.65 billion.

The company has continued acquiring land selectively, contracting to purchase 6,759 plots since 1 August 2024, compared to 3,906 plots in the same period a year earlier. These acquisitions spanned 42 sites with a total value of GBP 495 million. In addition, Bellway entered into option agreements for 17 strategic land sites.

Volume output for the full financial year ending 31 July 2025 is expected to reach between 8,600 and 8,700 homes, up from 7,654 in FY24. The underlying operating margin is forecast to approach 11.0% YoY, an increase from 10.0% YoY in the prior year. The average selling price is now expected to be approximately GBP 315,000, a revision from the earlier estimate of GBP 310,000, largely due to product mix changes and the inclusion of some higher-value completions.

As of 1 June 2025, Bellway held net debt of GBP 73 million, compared to GBP 57 million a year earlier. The Group expects to maintain low adjusted gearing through the year-end. The interim dividend, announced in March 2025, was raised to 21.0p per share and is scheduled for payment on 1 July 2025. Full-year dividend cover is expected to be approximately 2.5 times.

Bellway stated it is concentrating on capital efficiency and asset turnover to support future return and plans to provide an update on its capital allocation approach later in 2025.