Newcastle housebuilder Bellway has constructed a record number of homes in the last six months, with completions jumping 6.3%.
The firm, now based at AirView Park, close to Newcastle International Airport, beat a number of half-year records it set in 2020 to build 5,656 new homes, driven by strong demand.
Housing revenue rose by over 12% to £1.715bn, in part driven by strong growth in the number of homes sold. The average selling price also rose, by 5.8%, to £303,200.
It saw a 3.3% increase in the private reservation rate to 156 per week - up on 151 - and also made record half year investments in land, to give it a strong platform for growth in future years.
It has 8,848 plots contracted, compared to the 7,005 it had this time last year, across 54 sites, an increase of 13 sites.
Bellway also said it has a robust forward sales position, with an order book of 5,889 homes – a 28% jump - worth £1.625bn.
Shares increased by 2.7% in early trading to 3,112p after publication of the update, in which it said housing completions for the full year are now expected to increase to around 9,800.
Jason Honeyman, chief executive, said: “In the context of challenging circumstances, the group has delivered an excellent first half performance, achieving growth in volume to a record level, while maintaining high build standards and a focus on customer service.
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“I am therefore delighted that Bellway continues to maintain its fivestar homebuilder rating. While uncertainty remains in the wider economy, the underlying demand for good quality new homes remains robust and we have therefore made further, disciplined investment in attractive land opportunities.
“Looking forward, we have a sizeable forward order book, which provides a solid platform for the second half of the financial year and beyond. In addition, our balance sheet is strong, with significant cash resource and this provides the Group with the necessary resilience and flexibility to respond positively to the evolving economic environment.”
The half-year trading update – made ahead of publication of its interim results in March – comes as Bellway and 海角视频 Land Estates submit plans to Gateshead Council for a scheme to create 100 new residential apartments on a derelict site on Gateshead Quayside.
The £16.5m proposed development, to the south of Fletcher Road, Gateshead, is expected to create 81 new jobs over the three-year build period.
The site has lain empty for more than 20 years since the closure of the railway goods yard in the 1990s. If the application is successful, it will provide a mix of one and two-bedroom homes across three apartment blocks.
Mark Gabriele, land and planning manager for Bellway North East, said: “Bellway has been delivering new housing on key brownfield and regeneration sites for over 70 years, and our plans for the re-development of the former goods yard at Gateshead Quayside reflects our heritage exactly.”
Tim Witty, development director at 海角视频 Land Estates, said: “We are passionate about facilitating growth, development and regeneration within our region and we believe that the proposed development on Fletcher Road will do just that.”