Bellway upbeat on full year as it posts 12% rise in reservation rate

Housebuilder Bellway said it expects total completions and average selling prices to rise in the full year as it reported an "excellent" start to the current financial year.

In a trading update for the 18-week period from 1 August to 6 December, it said the reservation rate increased 12% to 165 homes per week, up from 147 in the same period last year.

The group said customer demand has continued to be robust throughout the usually quiet summer months and on into the traditionally stronger autumn selling season.

The average selling price in respect of reservations taken in the period rose 5.8% to £252,100, which Bellway said was modestly ahead of expectations thanks to the favourable pricing environment and ongoing investment in higher value locations.

Housing completions for the year to the end of July 2016 are expected to rise around 10%, while the average selling price of completions in the current financial year is also expected to increase 10%.

Chief executive Ted Ayres said: “The measures announced in the government’s recent autumn statement, particularly in relation to the amendments to the Help to Buy scheme in London and its extension in England until 2021, not only provide access to mortgages for homebuyers but also provide further visibility in relation to the longer term outlook when assessing land opportunities.

“The group continues to trade well and is favourably positioned to continue delivering volume growth, whilst maintaining a strong focus on return on capital employed.”