Newcastle housebuilder boosts revenue by £53m with record amount of homes built

A North East housebuilder has reported a revenue increase of £53.4m for the last half year.

Bellway, which is based in Newcastle, announced that its revenue has risen by 3.6 per cent, going from £1,448m to £1,541.4m.

During the period, the company’s housing completions rose by 6.3 per cent to a record 5,321 homes compared to 5,007 in the previous year.

However, the firm has taken the decision to postpone dividend payments due to the coronavirus outbreak and its effect on the economy.

Its measures also include a pause in new site acquisitions and a re-prioritisation of production expenditure to focus on plots which are in the later stages of construction programmes.

Paul Hampden Smith, the company’s chairman, commented: “Bellway continued to make a significant contribution to the supply of much needed new homes, delivering a record number of housing completions and further building upon the growth achieved in the same period last year.

“The strong growth in volume was a result of continued investment in new outlets and the market demand for reasonably priced, good quality housing.

“As a leading, national housebuilder, our operations are underpinned by a long-term and responsible approach, through which we endeavour to create a positive experience for our stakeholders.

“A continued focus on quality remains integral to how Bellway operates, and to this end, we expect to maintain our status as a five-star homebuilder for a fourth successive year.”

Jason Honeyman, group chief executive, added: “During the period the new build housing market continued to benefit from favourable conditions. There was strong demand for reasonably priced, good quality homes, supported by a positive employment environment and low interest rates.

“In addition, the government’s Help to Buy scheme provided valuable access to affordable mortgage products for those with at least a 5 per cent deposit.

“Against this backdrop and notwithstanding the uncertainty which normally moderates housing demand in the run up to a general election, customer sentiment remained resilient throughout the period.”

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