Bellway Shares Slide Despite Housing Completions Growth

Bellway (LON: BWY) shares fell more than 5% Tuesday following its latest trading update, despite the housebuilder reporting an 11.9% rise in housing completions for the first half of its financial year.

For the six months ending 31 January, Bellway reported 4,577 completed homes, up from 4,092 a year earlier, with an average selling price of £310,600. The company also highlighted an 18.6% increase in private reservation rates per outlet per week to 0.51, supported by bulk sales.

Despite the strong performance, investor concerns over rising mortgage rates and economic uncertainty weighed on the stock. Bellway noted that while mortgage rates had increased modestly since the autumn, customer demand remained stable, and pricing had held firm.

“Bellway has delivered a strong first-half performance in challenging market conditions,” commented Bellway CEO Jason Honeyman. “While mortgage interest rates have increased modestly since the autumn, customer demand has remained robust, and the Group has a healthy order book to support our targeted growth in volume output for the full year.”

The company’s forward order book stood at 4,726 homes, with a value of £1.31 billion, up from £1.01 billion a year earlier. It reaffirmed its full-year target of at least 8,500 home completions, with output weighted towards the first half of the year.

Bellway ended the period with £8 million in net debt, compared to a £76.6 million net cash position last year, as it ramped up land investment. The company acquired 5,246 plots across 32 sites, significantly expanding its land bank.

Honeyman added that the company was well-positioned for future growth, though he cautioned that customer demand remains sensitive to mortgage affordability and economic conditions.