Bellway PLC on Friday said it was encouraged by the new UK government’s plan to increase the supply of homes in the country, as it reported a slump in house completions.

The Newcastle-based housebuilder said total house completions dived 30% to 7,654 in the financial year ended July 31, from 10,945 a year prior.

The average selling price dipped 0.7% to £308,000 from £310,306.

However Bellway said both figures were slightly ahead of previous guidance.

Housing revenue fell 31% to £2.35 billion from £3.40 billion.

‘While a lower starting forward order book drove a reduction in volume output, customer demand during the year has benefitted from a moderation in mortgage interest rates which has helped to ease affordability constraints and supported an increase in reservations,’ said Chief Executive Jason Honeyman.

Bellway said its forward order book stood at 5,144 homes on July 31, up 17% from 4,411 a year before.

Looking ahead, CEO Honeyman said: ‘We are encouraged by the new government‘s plans to increase the supply of new homes across the country and welcome its plans to reform the planning system. Overall, the long-term housing market fundamentals are positive, and we remain confident that our robust balance sheet and operational strength, combined with the depth and quality of our land bank, will enable Bellway to successfully capitalise on future growth opportunities.’

Bellway said: ‘Customer confidence has improved, driven by a moderation of both mortgage interest rates and consumer price inflation, and an increase in wages. Trading patterns were less volatile than the prior financial year when sharp changes in borrowing rates led to significant variations in customer demand. We have been encouraged by the improvement in affordability during the year and the relative stability in mortgage interest rates since January 2024.’

Bellway shares rose 1.7% to 2,704.00 pence each on Friday morning in London.

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