Bellway PLC on Tuesday said house price increases in the UK continue to offset build-cost inflation, adding it had a ‘substantial’ forward sales position as it reiterated its previous full-year guidance.

The Newcastle-based housebuilder reported strong sales demand in the time between February 1 - the start of its financial second half - and June 5, with an average of 253 reservations per week. This represented a 5.9% increase against the equivalent period in the previous year.

Bellway noted a ‘substantial’ forward sales position, with the value of its order book rising by 27% to £2.40 billion at June 5 from £1.89 billion at June 6 a year before.

Chief Executive Jason Honeyman said: ‘Bellway has delivered another strong trading performance and despite the wider macroeconomic uncertainty, the group continues to perform well. Demand is strong, reservations are ahead of last year and our order book remains substantial.’

Consistent with previous guidance, Bellway said it expects housing completions for the full year to grow by around 10% to more than 11,100 homes at an anticipated average selling price in excess of £305,000.

In the year ended July 31, 2021, Bellway completed 10,138 homes at an average price of £306,479.

Regarding macroeconomic risk, the housebuilder said it was in a ‘robust position’ thanks to a substantial order book, a strengthened land bank and a well-capitalised balance sheet.

Shares in Bellway were up 3.5% at 2,286.00 pence on Tuesday morning in London.

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