UK property developer Bellway (BWY) is guiding for housing revenue to increase by nearly a third to £2.2 billion in the 12 months to 31 July, up from £1,7 billion a year earlier.

Shares in the housebuilder are up 1.5% to £20.60 following the positive trading update.

Bellway expects further volume growth with 12.5% more housing completions and says a rise in average selling prices contributed toward higher revenue.

Average selling prices are up from £223,821 to £251,700, which was influenced partially by a lower proportion of social housing completions.

The company has been supported by low interest rates and the Help to Buy scheme, which contributed to a good availability of mortgages.

Bellway believes it has limited exposure in the high value London market after the Brexit vote, noting strong visitor numbers for its properties and low cancellation rates.

Chief executive Ted Ayres says: ‘It is still too early to assess the effect of the EU referendum result.

‘However trading in recent weeks has been encouraging and Bellway, with its strong balance sheet and robust land bank, can be flexible and respond opportunistically to any changes in market conditions.’

Accompanying the upbeat outlook, Bellway says it has a healthy forward order book comprising 4,644 homes valued at £1.1 billion and a strong balance sheet to provide a solid foundation for 2017.

Issue Date: 05 Aug 2016