Housebuilding giant Bellway has issued a strong appeal to the Government, urging more assistance for first-time buyers as the property market continues to face subdued demand. The North East-based developer emphasised that such intervention is essential if national housing targets are to be met, highlighting ongoing challenges in the sector.
Market Performance and Challenges
In a trading update covering the six months to the end of January, Bellway revealed a mixed picture. The company's private reservation rate, including bulk sales, declined slightly from 0.51 to 0.47. However, when bulk sales were excluded, there was a noticeable increase, suggesting some resilience in individual buyer interest.
Total completions rose from 4,577 to 4,702 homes, with the average selling price increasing to £322,000 from £310,581. Bellway is now on course to deliver approximately 9,200 homes this year, up from 8,749 previously, indicating progress towards its volume targets.
Financial Highlights and Forward Outlook
The FTSE250 builder reported a housing revenue increase of over 6% to £1.51 billion. Underlying operating margin improved marginally to about 11%, up from 10.9% at the end of July 2025. Despite these positive figures, the forward order book showed a decline, with 4,442 homes at the end of January compared to 4,726 in the same period last year.
Jason Honeyman, Chief Executive of Bellway, commented on the company's performance, stating, "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."
Demand-Side Pressures and Government Role
Bellway pointed to "clear signs" of improving demand as the early spring selling season gets underway, following a difficult autumn where sales slowed due to pre-Budget uncertainty. The company remains cautious, however, noting sensitivity to mortgage affordability and the broader economic backdrop.
Mr Honeyman added, "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."
Land Acquisition and Development Activity
The housebuilder's land bank activity showed strategic adjustments. Bellway contracted to purchase 4,721 owned and controlled plots across 15 sites in the first half, down from 5,246 plots across 32 sites the previous year. The total contract value was £227 million, compared to £378.2 million.
Notably, this included a significant 1,900-plot site in the Dunfermline Strategic Development Area, aimed at boosting growth in Bellway's Scotland West and Scotland East divisions. Additionally, the group secured 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.
Bellway's call for government action underscores the ongoing need for supportive measures to sustain housing market activity and ensure long-term growth in the sector.
