Scottish market ‘particularly strong’ for Bellway

Bellway has said it is “enjoying a particularly strong performance” in Scotland after the housebuilder reported a massive increase in profits and home completions.

The latest annual results from the FTSE 250 firm showed pre-tax profits more than doubled to £479 million in the year to the end of July.

Revenues also climbed by around £900m to £3.13 billion as the group benefited from substantial pent-up demand that arose after coronavirus forced the UK to enter a lockdown and property freeze in spring last year. On an underlying basis, profits rose 71.6% to £530.8m.

The Newcastle-based builder said: “The pricing environment remains positive, with low-to-mid single-digit house price inflation benefitting sites where demand is particularly strong.

“This is most pronounced in Scotland and regions such as the north-west, the Midlands and the home counties, with customers’ evolving working routines providing opportunities to live further away from traditional centres of commerce.

“In general, and across the group, house price inflation has offset rises in build costs.”

Bellway added: “The market is strongest for good quality, affordably priced homes in desirable locations, with our Scotland, Manchester, Yorkshire and East Midlands divisions all enjoying a particularly strong performance in the north of the country, a reflection of the favourable market conditions and our land investment over recent years.”

However, Bellway flagged the impact of ongoing supply chain disruption, which is pushing up prices of materials such as steel and timber.

The lorry driver crisis and the recent fuel issues are also continuing to affect the availability of materials, while the company is also battling wider labour shortages.

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