Bellway shares hit high as housebuilder plays down Brexit impact
GETTY Bellway have announceed strong growth after playing down the impact of Brexit
The FTSE 250 group said demand for new homes had increased across all regions in the traditionally strong spring selling season and remained buoyant in the weeks leading up to the General Election. Growth is expected to continue next year despite a “degree of instability” following the election result and uncertainty over Britain’s negotiations to leave the EU, as Bellway suggested all political parties recognised the need for more homes to be built.
Reservations, where a buyer reserves the right to buy a property for a period of time, were up 13 per cent in the four months to June 4, while completions for the 12 months to July 31 are expected to be about 10 per cent higher than last year’s 8,721. Bellway had previously suggested completions would be at least 5 per cent higher.
We have made a significant investment in land Chief executive Ted Ayres
The average selling price is about £260,000, and Bellway said its investment in higher value locations should drive prices higher. It has contracted to acquire 10,250 plots since last August, up from 8,600 the previous year.
GETTY The firm said demand for new homes had increased in all regions during spring
Chief executive Ted Ayres said: “We have made a significant investment in land and work in progress over a number of years and this, together with a strong balance sheet, should ensure that Bellway is well positioned to deliver further volume growth, this year and beyond.” He cited good availability of affordable mortgages, low unemployment and the Government’s Help to Buy scheme as underpinning healthy demand for new homes.
More for your money in Margate Mon, July 25, 2016 Margate led a property boom across the north Kent towns that fall within London's commuter orbit Play slideshow Rightmove 1 of 20 5 bedroom semi-detached house for sale Cornwall Gardens, Cliftonville, Margate, Kent £425,000