The developer said intervention is needed if the Government is to meet its housing targets
A Bellway estate in Northumberland(Image: Newcastle Chronicle)
Housebuilder Bellway says the Government must introduce help for first time buyers amid a subdued market.
The North East firm says there are signs of improving demand in the early spring selling season having pointed to a tough autumn in which sales slowed down thanks to uncertainty in the run up to the Budget. In a trading update for the six months to the end of January, Bellway said its private reservation rate including bulk sales had fallen to 0.47 from 0.51, but it saw an increase where bulk sales were excluded.
There was growth in total completions from 4,577 to 4,702 as the average selling also crept up to £322,000 from £310,581. The FTSE250 builder is now on track to deliver more homes this year, at an estimated 9,200, up from 8,749 previously.
Bellway talked of “clear signs” that demand was improving but said it was mindful of customers’ sensitivity to mortgage affordability and the changing economic backdrop. It had been encouraged by a pick-up in reservation rates.
Underlying operating margin was about 11%, up slightly from 10.9% at the end of July, 2025. And housing revenue increased by more than 6% to £1.51bn. The firm’s forward order book was down, with 4,442 homes at the end of January compared with 4,726 in 2025.
Jason Honeyman, chief executive, said: “Bellway has delivered a robust first half performance in a challenging market. Notwithstanding the current industry headwinds, our forward order book and strong outlet opening programme leave us well-placed to meet our targeted growth in volume output for the full year, and I remain confident that we can drive increased cash generation and shareholder returns in FY26 and beyond.
“We welcome the Government’s reforms to the planning system, however, to make meaningful headway against its ambitious housing targets, the Government must also make an early commitment to ease demand-side pressures by introducing essential financial support for first-time buyers.”
Bellway also pointed to land bank activity where it had contracted to buy 4,721 owned and controlled plots in the first half of the year across 15 sites, up from 5,246 last year across 32 sites. Total contract value was £227m, compared with £378.2m, and included a large 1,900 plots site in the Dunfermline Strategic Development Area – which is intended to spur growth in Bellway’s Scotland West and Scotland East divisions
During the six months the group also made agreements to buy 11 sites with its strategic land team submitting planning applications for 29 sites representing 3,900 plots. A further 30 sites comprising 6,500 plots are expected to go to planning by the end of July.