Bellway lifts price guidance after strong spring selling season

7th Jun 2024 07:12

(Sharecast News) - Housebuilder Bellway has kept its guidance for housing completions this fiscal year but has lifted its forecast for pricing.

The company now expects selling prices to average £305,000 for the 12 months to 31 July, down from £310,306 last year but ahead of previous guidance of £295,000 due to changes in product mix.

The company said it has seen stronger trading through the spring selling seasons, with improved affordability supporting an increase in customer confidence and reservation rates compared to the first half of the financial year.

"Customer demand has benefitted from an improvement in affordability, driven by a moderation of both mortgage interest rates and consumer price inflation and an increase in wages. Overall, the backdrop of market stability has led to headline pricing and the level of targeted incentives remaining stable across our regions," the company said.

Private reservations per outlet have averaged 0.62 per week in the period between 1 February and 2 June, up 6.9% on last year, despite the number of outlets rising to 245 from 239.

Bellway is now fully sold for the current financial year, and has seen a substantial increase in its forward order book since the start of the period, from 4,411 to 5,346.

"Bellway has delivered a solid trading performance supported by improved affordability and a seasonal uplift through the spring, and we remain on track to deliver full year volume output of around 7,500 homes," said chief executive Jason Honeyman.