Bellway PLC’s (LON:BWY) delivered a mixed half-year update as the housebuilder saw good indications for the return of the traditionally strong spring selling season but flagged “challenges” in relation to higher-priced homes and continued “upward pressure on construction costs” across the wider sector.
The housebuilder completed 5,321 new homes in the six months to 31 January, up 6.3% on a year ago, but average selling prices decreased 2.5% to roughly £286,500.
With house prices flat, Bellway said its operating profit margins will “continue to moderate towards a more normalised level”, as it has warned before.
Management expects profit before tax for the full year to be in line with current market consensus, which it calculated to be £622mln.
The group said “a number of ongoing initiatives” have been put in place to help mitigate build cost increases.