Record completions at Bellway

Bellway, the housebuilder with a string of developments in Scotland, built a record number of new homes in the first six months of its financial year.

The group said that 5,321 homes were finished during the period, a 6.3 per cent rise on the year before. Profit before tax for the full year is expected to be in line with market expectations.

Despite political uncertainty towards the end of the calendar year, customer interest remained steady, the firm noted. With the general election behind them, potential house buyers are coming out with “renewed consumer optimism” in 2020 which is helping the housing market, Bellway added.

The business has a modestly stronger order book of 4,598 homes, 11 ahead of last year. Yet the value of the same book is £8.2 million lower.

Chairman Paul Hampden Smith told investors: “Bellway continues to increase the supply of affordably priced, good value new homes, following another successful trading period in which it has achieved further volume growth.

“Looking forward, a robust balance sheet, operational capacity for expansion and a strong order book should ensure that the group is well placed to deliver additional, long-term volume growth, thereby continuing our disciplined growth strategy.”

Adam Vettese, an analyst at investment platform etoro, said: “Now is a good time to be a housebuilder – and a shareholder of Bellway, in fact.

“We have near perfect conditions for builders at present: consumer demand is improving, there is a chronic undersupply of homes and there is a new government likely to cosy up to builders if it is to achieve its promise of a million new homes this parliament.

“Bellway has been a big beneficiary of this improving environment, with its shares up by 42 per cent in the past six months. After this update, we expect strong growth.”