Homes demand spurs Bellway to splash out £380m on land
Bellway has splashed out £380 million on land as the housebuilder bets on growth amid “robust” demand for homes, it said on Tuesday.
The spending on land over the six months to January 31 in the aftermath of the Brexit vote is 20% higher than the previous year.
Despite uncertainty caused by the referendum “the land market does remain attractive and our land teams continue to identify opportunities”, the company said.
Investors cheered a 6% rise in the number of housing sales to 4,462 as well as a 10% rise in the order book to £1.1 billion. Even in the weaker London property scene — where Bellway is at the more affordable end of the market — sales prices and demand for “remains firm”.
Shares jumped 3%, or 75p, to 2591p, and lifted rivals elsewhere in the sector. Davy analyst Colin Sheridan said: “Today’s announcement should see more upgrades to full-year numbers.”
Builders advanced despite lender Halifax revealing a 0.9% fall in house prices during January.
Weaker growth could result “in some downward pressure on annual house price growth during the year,” housing economist Martin Ellis said
