Bellway asks subcontractors to cut rates - report

Bellway has asked subcontractors to cut their rates by 5% as the housebuilder seeks to pass on some of the costs created by the Covid-19 crisis, according to a report.

The company wrote to its suppliers to say the impact of the crisis was "signifiant and unprecedented", The Times reported.

Bellway said on 9 June it had "substantial" forward sales and that its order book was 6,038 homes compared with 6,312 a year earlier. The homes' carrying value was £1.57bn, slighly less than the £1.64bn a year earlier. The company said construction had restarted at about 230 sites and all sales offices had reopened.

The builder put 75% of its 3,200 workers on furlough during the lockdown but all staff have now returned to work. It has reported a strong balance sheet with net debt down to £157m at the end of May from £261m a year earlier.