UK builder Bellway reports record revenue as house prices climb

theguardian.com:

Bellway has reported a record year of sales as rising house prices offset increasing energy and building costs, and the housebuilder predicted a bumper 2023 despite rising interest rates and the cost of living crisis.

The company reported a 13% increase in revenues to a record £3.5bn and 10.5% growth in completions to a record 11,198 in the financial year to the end of July.

Bellway said that it benefited from a higher than expected rise in the average selling price, which rose 2.6% to £314,000.

“Bellway has delivered another strong performance, with volume output and housing revenue reaching record levels against the backdrop of a challenging operating environment and macroeconomic uncertainty,” the Bellway chief executive, Jason Honeyman, said.

Despite the growing economic pressures as the Bank of England raises interest rates despite predicting an imminent recession, Bellway forecast another record year. The number of home completions is expected to reach 12,200 – about 12% more than in pre-Covid 2019. The company’s forward orders book stands at 7,223 homes with the value rising 4.5% to £2.1bn – another record – and it said it has already sold nearly 50% of private completions.

During the year the pace of business increased as buyer demand remained strong with the reservation rate increasing by 6.9% to 218 a week, while the cancellation rate remained at a low 13%.

“Confidence among customers is strong,” the company said. “Although interest rates and fuel costs have contributed to the rise in the cost of living, Bellway’s range of modern, well-designed new homes continues to provide an attractive and affordable proposition for our customers.”

The company said it expects the average selling price to drop slightly to just over