Directors at Newcastle housebuilder Bellway have hailed a good performance in 2025 after posting a revenue rise of almost 17% to £2.78bn.
During the year ended July 2025 the firm delivered 8,749 homes – almost 1,000 up on the previous year – saying customer demand had been supported by “generally good” availability of mortgage finance and relative stability in mortgage interest rates. Pre-tax profit was £221.9m for the year ended July 2025, up 20.8%, while operating profit was £250.7m, up almost 18% on last year’s £212.8m.
Bellway is targeting 9,200 completions for FY26 and expect this to grow to around 10,000 homes by FY28 - should market conditions remain stable. It said the private reservation rate per outlet per week of 0.57 was 11.8% higher than the 2024 figure, but said that a solid period of demand through the spring months was followed by softer trading in the final quarter.
During the year the group traded from an average of 246 outlets, one more than last year and in line with its expectations, with a closing position of 249 outlets at July 31. As we have previously reported, Bellway signalled a slowing in customer demand since the start of its new financial year.
In full year results it highlighted a continuation of weak consumer sentiment. It said: “Customer demand has been affected by ongoing affordability constraints and uncertainties about potential taxation changes in the Government’s Budget in November 2025.”
Bellway's forward order book as of October 5 comprised 5,285 homes with a value of £1.53bn, up on last year’s £1,45.bn. And despite near-term market challenges, Bellway said it has a strong land bank and outlet opening programme, which together with a healthy order book and work-in-progress position supports its plans for growth in volume output to around 9,200 homes in FY26.
The Tyneside based housebuilder also announced it was launching a share buyback scheme, which will return £150m over the next 12 months, saying the group intends to continue with the return of excess capital in future years.
Jason Honeyman, CEO of the AirView Park based business, used the results to call upon the Government to show its commitment to planning reform, saying policy is vital for the industry.
He said: “Bellway has delivered a good performance in FY25 with double-digit growth in volume output and profits, and our sharper focus on balance sheet efficiency is reflected by the £150m share buyback programme announced today.
“While we face some near-term market challenges, we have a high-quality land bank, strong balance sheet and the operational capacity to capitalise on the positive long-term fundamentals of our industry. Combined with our refreshed and disciplined approach to capital allocation, I am confident that we can drive increased volume output, cash generation and shareholder returns in FY26 and beyond.
“Bellway remains very well-positioned to continue delivering much needed high-quality new homes in the years ahead. However, supportive Government policy is essential for the industry to drive a meaningful and sustained increase in housing output.
“The Government must demonstrate its commitment to accelerating housebuilding by driving through planning reform and addressing the affordability constraints facing first-time buyers across the country.”
Bellway added that the costs and voluntary payment associated with the Competition and Markets Authority (CMA) investigation totalled £15.4m.
