The housing market is on the mend, according to FTSE 250 housebuilder Bellway, which reported “robust” trade through the spring selling season.
In a trading update covering the months between February and June, Bellway reported the overall reservation rate of its new build properties increased to 152, up from 139 in the same period last year.
The increase in the overall reservation rate was driven by improvements in private reservations, which offset the continued decline in social housing from previously elevated levels.
This helped the forward order book to increase from 4,411 homes at the start of the current financial year to 5,346 homes at 2 June.
“Customer demand has benefited from an improvement in affordability, driven by a moderation of both mortgage interest rates and consumer price inflation and an increase in wages,” the firm said.
Bellway said it was “encouraged” by the period of stability and is now “fully sold” for the financial year. Volume and margins were in line with the guidance provided in the interim results.
The firm is on track to deliver full-year output of around 7,500 homes, down from 10,945 last year.
The overall average selling price is now anticipated to be around £305,000, down from £310,306 last year.
However, this is still ahead of the previous guidance of £295,000, largely due to “changes in product mix”.
“Bellway has delivered a solid trading performance supported by improved affordability and a seasonal uplift through the spring, and we remain on track to deliver full year volume output of around 7,500 homes,” Jason Honeyman, chief executive, commented.
“Bellway remains in a strong position to return to growth in financial year 2025,” he added.
Looking forward the housebuilder noted there is cross-party support to increase the supply of housing. Market fundamentals remain “positive”, Bellway said, and will be “bolstered by greater clarity over planning and housing policy beyond the upcoming General Election.”