Bellway wards off housing slowdown fears with record completions

Updated by February ,11, 2022

Property developer Bellway completed a record number of houses and saw its profit margin rise in the last six months, warding off concerns of a slowdown in the housing market.

Completions rose to a record high of 5,694 for the six-month period to January 31. The average selling price rose 2.8% to £311,800.

“The pricing environment has been positive,” the Newcastle upon Tyne-based developer said.

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“Notwithstanding the recent, modest rises in interest rates and cost-of-living inflationary pressures, our mid-market product remains affordable in a historical context.”

Shares in Bellway rose 70p, or 2.4%, to 2908p today.

Many fear rising cost of living pressures could take the steam out of the housing market.

House prices rose by just 0.3% in January, according to Halifax, which was the lowest increase since last June. Russell Galley at Halifax said inflation and soaring energy costs makes it “likely that the rate of house price growth will slow considerably over the next year.”

Bellway has put aside £165 million to tackle building safety in its mid-rise buildings.

Shares sunk 15% in January after housing secretary Michael Gove said developers must foot the bill to replace tower block cladding.

The developer also faces a new 4% residential property developer tax, announced by the Chancellor in October, which comes into force in April 2022 as part of measures to fund safety improvements to taller buildings.

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