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Bellway sees strong rise in sales and prices

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The government’s “Help to Buy” is certainly giving a boost to house builders, with Bellway (LON:BWY) the latest company to report an uplift in interest since the scheme was introduced.

Reporting on the period from 1 February – two months before the “Help to Buy” scheme was introduced – to 31 May, Bellway said reservations have averaged 160 per week, up 31% year on year.

The average selling price of reservations has increased as a result of changes in product mix, and on certain new sites, especially in the south, prices achieved have been modestly above management's expectations. As a result, the average selling price of reservations taken since 1 February is £200,300, some 5% ahead compared to the same period last year.

The company has raised its guidance on sales completions for the current financial year, which runs to the end of September. It said it has already secured its initial target of increasing volumes by 5% year-on-year so it is upping its target to 7%.

The group has reservations in place with a value of £380 million for completion in the next financial year, way ahead of last year’s figure of £270mln.

Shares in Bellway were up 2.4% to £13.44 in the first hour of trading.

Quick facts: Bellway PLC

Price: 3394 GBX

LSE:BWY
Market: LSE
Market Cap: £4.18 billion
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