Subdued trading conditions from late spring have continued into the 2026/27 financial year as mortgage rates remain elevated and volatile, while wider economic uncertainty and planning delays continue to affect housing delivery.
However, Bellway acknowledged that the availability of competitively priced mortgage products had provided some support to customer demand during the year – although affordability remained constrained, particularly for customers requiring higher loan-to-value (LTV) mortgages.
Furthermore, the housebuilder said that while the government-backed equity loan scheme Your First Home has the potential to provide significant support, the period ahead of its launch could influence the timing of first-time buyers’ decisions to buy as they wait for further details.
According to its full-year results for the year ended 31 July, Bellway reported an increase in its use of buyer incentives to maintain sales momentum and undertook a higher proportion of bulk sales to support volume delivery and cash generation.
The overall average selling price increased to £324,404, up from £316,412 in 2025, with next year’s average price expected to be broadly in line at £325,000.
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Bellway’s private reservation rate decreased by 5.8% to an average of 131 per week, down from 139 in 2025. The private reservation rate per outlet per week was 0.55, compared to 0.57 in 2025.
The private reservation rate excluding bulk sales was 0.49, compared to 0.52 last year. The overall reservation rate, including social homes, was 3.5% lower at 165 per week (2025: 171) and the cancellation rate remained low at 12% (2025: 13%).
The housebuilder’s forward order book on 2 October 2026 comprised 4,981 homes valued at £1,437.6m, compared to 5,285 homes valued at £1,526.9m reserved during the same period last year.
Given the lower opening order book and continued affordability pressures, volume output is expected to reduce in FY27. The group is targeting total completions of between 9,000 and 9,400 homes, down from 9,695 completions reported in its 2026 full-year results.
Bellway’s revenue increased by 13.6% year-on-year, ahead of analysts’ expectations for £3.13bn, while underlying pre-tax profit rose 5.7% year-on-year, coming in below forecasts.
Build cost inflation, elevated sales incentives and a higher proportion of bulk sale completions are expected to result in a further reduction in the underlying operating margin in the 2027 full-year results.
Jason Honeyman, chief executive of Bellway, said: “The UK continues to face a substantial shortage of new homes, while affordability remains a major barrier for many prospective buyers. We therefore welcome the government’s proposed Your First Home scheme, which has the potential to provide significant support for first-time buyers. We look forward to further detail on the scheme and to engaging with government on its design and implementation. Bellway has the financial strength, operational capability and land bank to respond as market conditions improve and increase the delivery of much-needed new homes over the medium term.”
Victoria Scholar, head of investment at Interactive Investor, said: “Bellway is dealing with a challenging economic backdrop. Build cost inflation, which is expected to hit 3-4% in FY27, as well as sales discounts, are putting pressure on margins. Meanwhile, the Middle East conflict and this year’s energy shock have pushed up mortgage rates, creating consumer confidence and affordability pressures in the housing market. And with the Bank of England leaning towards a hawkish bias, those pressures show no sign of abating.”
