Bellway cheers boost to house buyer confidence since Tory election win

A number of housebuilders have reported improved buyer confidence since the December 2019 election

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Joanna Hodgson7 February 2020

Bellway on Friday posted higher sales and joined the throng of housebuilders cheering more buyer confidence since the Conservative Party’s election victory.

Chief executive Jason Honeyman said: “We have seen the Boris bounce since the December election. Sales rates and web traffic are up UK wide, and there has been renewed customer optimism from people that were holding back on purchases prior to there being more political certainty.”

The FTSE 250 housebuilder agreed 5321 home sales in the six months to January 31, up from 5007, helping lift sales nearly 4% to £1.5 billion.

Full-year pre-tax profits are expected to meet forecasts.

David O’Brien, equity analyst at Goodbody, said: “The UK housebuilding sector has received a shot in the arm since the beginning of 2020. Bellway released a solid H1 trading update which follows on from a string of encouraging updates from housebuilders including Barratt, Persimmon and Taylor Wimpey.”

However, Bellway cautioned there are challenges selling higher-priced homes, and there remains upward pressure on construction costs.