Homebuilder Bellway has seen strong sales over the past five months and a 27.5% increase in the value of its order book to £2.4billion.
The North East-based developer also said that since last August it had secured land worth £926million, representing 13,496 plots, down from the 16,582 plots secured in the same period of 2021.
In an investor update covering the period from February 1 to June 5, Bellway announced plans to complete 11,100 homes at an average sale price of £305,000, a 10% increase on the last year.
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Despite fewer potential plots acquired, the developer said it expects further volume growth in 2023 to reach annual production of around 12,200 homes.
At the start of April, Bellway announced £300million in planned additional costs to address safety issues with the cladding of buildings it has helped develop or renovate since 1992. The group acknowledged the costs as “significant” and said said the sums – which are in addition to £186.8 million previously set aside – would be booked as an adjusting item for the year ending July 31, 2022.
Investors were told that concerns over the availability of materials had “generally eased” during the year, although shortages of bricks, blocks and tiles occasionally occurred regionally. Housing prices continued to offset rising construction costs, he said.
Jason Honeyman, Group Chief Executive, said: “Bellway delivered another strong business performance and despite the wider macroeconomic uncertainty, the Group continues to perform well. Demand is strong, reservations are ahead of last year and our order book remains substantial.
“Customer satisfaction is high and we enjoy continued success as a five-star home builder, as recognized by HBF’s Customer Satisfaction Survey.
“The positive sales market and the additional investments we have made in land provide a solid platform for the group to pursue its growth strategy in the years to come.”