Bellway posts higher house completions; launches GBP50 million buyback

Bellway PLC on Tuesday said it expects its stronger 2026 revenue to lift underlying profit as housing completions increased, but higher mortgage rates see moderation to customer demand.

The Newcastle upon Tyne-based housebuilder said total housing completions rose 11% to 9,695 homes from 8,749 a year earlier, exceeding its guidance range of 9,300 to 9,500.

In a trading update covering the financial year ended July 31, Bellway said it expects underlying operating profit is to have risen 5.4% to £320.0 million from £303.5 million a year earlier, with revenue increasing 13% to £3.14 billion from £2.77 billion.

However, the adjusted operating margin is expected to have narrowed to around 10.0% from 10.9%, due to the increased proportion of lower-margin bulk sales during the year.

Bellway said it will launch a new £50.0 million share buyback after completing its current £150.0 million programme.

"Similar to the prior financial year, customer demand throughout the autumn was impacted by uncertainty ahead of the government's budget," Bellway said. "While we saw an improvement in trading in the early part of the spring selling season, there has been a moderation in customer demand since April in response to the rise in mortgage rates."

Last month, newly appointed UK Prime Minister Andy Burnham named John Healey as chancellor, replacing former chancellor Rachel Reeves, who delivered the autumn budget. Burnham named Angela Rayner as secretary of state for housing, communities & local government, a position she had previously held for around a year until September 2025.

Bellway has called on the government to "ease affordability constraints and stimulate demand", suggesting an immediate reduction in stamp duty fees and the the introduction of a government-backed deposit support scheme for first-time buyers.

Chief Executive Jason Honeyman said: "With the near-term outlook remaining uncertain, we call on the government to act now to improve access to housing across all tenures, both by helping first-time buyers onto the property ladder and supporting the delivery of affordable and social housing for those who need it most."

"An immediate reduction in stamp duty alongside a government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country."

Bellway shares rose 0.4% to 2,108.00 pence per share on Tuesday morning in London.

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