Bellway still sees lower output, average selling prices

UK housebuilder Bellway said it expected lower output and average prices due to a weaker order book and an uncertain interest rate environment.

The company on Tuesday maintained guidance that it would deliver full year volume output of around 11,000 homes, compared with 11,198 in the 2022 fiscal year with an overall average selling price of around £300,000, down from £314,399 at the end of July last year.

“Overall reservations in the period have been lower than the prior year, however, we have been encouraged by the levels of customer interest and the seasonal uplift in demand,” the company said in a trading update for the five months to June 4.

"In financial year 2024, given our reduced order book, lower prevailing reservation rates and the uncertain interest rate environment, we continue to expect a lower year-on-year volume output.

“While customer interest is currently healthy, the board remains mindful that cost of living pressures and the uncertain path of future interest rates could impact housing demand.”

Reporting by Frank Prenesti for Sharecast.com