Reporting on its half year to January 31 2018, the housebuilder said that it delivered 4,741 homes, up 6.3% on the equivalent period in 2017.
Its average selling price increased 7.7% to £275,945, which was partly driven by a greater proportion of completions from within London boroughs, and Bellway’s investment in higher value locations. The full year average price is anticipated to lift further to above £280,000 against the £260,354 of FY17.
The volume growth and increase in selling price pushed Bellway’s operating profit up 16.5% to £294.2 million.
Bellway said trading conditions were robust in all parts of the country where it builds, “with divisions in geographical locations as far apart as Yorkshire, Manchester and Essex all reporting sizeable increases in the number of homes sold”. The strong performance of its Scotland division – selling 414 homes – has reaffirmed Bellway’s plans to open a Scotland East division from August 1 2018.
Reservations over the period increased 7.2% to an average of 178 per week. Bellway traded from an average of 242 outlets, up 7.6%.
The trading environment for Bellway has “remained positive” since February 1, with reservations per week at 248, slightly up on 2017’s 246.
Bellway’s forward order book as of March 11 was 7.7% ahead of 2017 at £1,524.9 million, comprising 5,485 homes against last year’s 5,465 homes.
A spokesman for the company said: “Subject to the outcome of the spring selling season, this should enable Bellway to complete the sale of around an additional 600 homes for the year ending 31 July 2018 and in so doing, break through the 10,000 homes barrier for the first time in its history."
