Housebuilder Bellway passes 10,000 milestone as Scottish presence grows

● Average price of a home rises 9.4% to £284,900 ahead of more modest growth

Bellway has sold more than 10,000 homes in a year for the first time in its history but the housebuilder has also warned investors over flagging house prices.

In a trading update ahead of its full results, the FTSE-250 builder said it had sold 10,307 homes during the year ended 31 July.

Total revenues grew 16 per cent, year-on-year, to a record of almost £3 billion, while the value of the company’s forward order book, or home sales which have been agreed off-plan, also nudged higher, from £1.29bn to £1.3bn.

The average price of a Bellway home increased by 9.4 per cent to £284,900. However, the firm, which this week announced a further increase in its geographical footprint with the launch of a new division in the east of Scotland, warned that there would be “more moderate” growth in house prices in the year ahead.

Recent house price surveys have confirmed the UK property market in general is struggling to gain traction, though the new-build market has remained a bright spot.

Jason Honeyman, Bellway’s newly-appointed chief executive, said: “Bellway has responded positively to the favourable market conditions, completing the sale of over 10,000 new homes for the first time in its history, whilst retaining a clear focus on quality and customer care.

“In doing so, the group has set a new earnings record and yet, having invested significantly in land, has ended the year with a strong net cash position.

“Tradinghasbeenrobustand notwithstanding wider political and economic uncertainty in the UK, Bellway has both the financial and operational strength to respond opportunistically to future changes in market conditions.”

The firm said there remained an underlying requirement for “additional, good quality and affordably priced new housing”. It added that this was supported by the availability of the Help to Buy scheme and “an environment of low interest rates”, which despite the recent hike by the Bank of England, remain close to a historically low level.

Led by partner Janette Speed, law firm Shoosmiths in Edinburgh acted on behalf of Bellway Homes to negotiate the lease of its new offices in Almondvale Park in Livingston.

Speed said: “We are very pleased to have been involved in negotiations to secure the new offices in Livingston to support Bellway Homes’ continued expansion in the east of Scotland. Bellway Homes has enjoyed considerable growth in recent years.”