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The Markets
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The Markets
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Builders and building materials

Bellway blames mini-Budget for housing market uncertainty

Bellway PLC has accused the government of causing a potential shrink in the UK housing market, after revealing a drop in house reservations despite also reporting strong preliminary results for year to 31 July 2022.

Bellway accused the government of causing a potential downturn in the UK housing market after revealing a drop in house reservations in recent weeks.

Jason Honeyman, chief executive, said the housing market is bearing the brunt of the turmoil caused by the mini-budget and subsequent U-turns.

“I need stability like any business needs stability, so we hope that they sort themselves out soon, so people can get on with their jobs and their lives," he told The Standard.

"Help for the first-time buyer with deposits, that’s probably a good thing to keep the market moving, otherwise we are going to see it shrink.”

Honeyman's comment came after Bellway revealed record revenue, up by 13.3% to £3,537mln, and housing completions of 11,198, up by 10.5%, in the year to end July 2022.

With a strengthened total land bank of 97,706 plots, Bellway said it is retaining the capacity to increase the number of homes built to 16,000 per year.

However, it explained growth will remain 'disciplined' amid the current uncertain economic backdrop but the landbank gives it flexibility.

Responding to the figures, Honeyman added: "Bellway has delivered another strong performance".

Profits before tax rose by 23% to £650mlnn while the dividend goes up by 19%.

"Our strengthened land bank and resilient balance sheet provide a platform for long-term growth and, importantly, during a period of economic uncertainty, they enable the group to take a more cautious approach to land investment in the year ahead," Honeyman added.

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