Bellway forecasts more positive growth

ONE of the best-performing housebuilding firms during the recession signalled a return to more normal property market conditions yesterday.

Newcastle-based Bellway, the only major housebuilder currently paying a dividend to shareholders, said more outlets and a bigger order book worth 421 million left it on track for 10 per cent volume growth in the 2010-11 financial year.

In 2010 to date, the group said the market appeared to have returned to its more usual profile of a spring peak followed by a quieter summer period.

While concerns still exist in the wider economy, it said it achieved a slightly higher reservation rate during the financial year of 89 per week, with cancellation rates having returned to their normal level of 13 per cent.

It completed 4,595 home sales in the 12 months to 31 July, up 5 per cent on the previous financial year, while the average sale price of 163,000 compared with 154,005 a year earlier.

Bellway has been active in the land market, especially in the south of England, but said more opportunities were starting to emerge in its northern divisions. The firm has a number of developments in Scotland.

Brokerage Panmure Gordon made a small upgrade to full-year forecasts as a result of a better-than-expected performance on pricing.

In a note the firm added: "We continue to view Bellway as a quality company and regard the business as a safe pair of hands in a difficult market environment."