Bellway hikes its dividend as house sales rise

Housebuilder Bellway continues to recover from the recession, with sales siring and margins improving in the six months to the end of January.

The group completed the sale of 2,455 homes, an increase of 5.3 per cent on the same period a year before.

Chairman Howard Dawe said average selling prices also rose as the firm concentrated on building larger homes in areas where the property market remains robust.

Developments on land bought at depressed prices following the financial crisis also boosted margins, helping pre-tax profit for the half-year hit £40.4 million, up from £24m the year before.

“There remains an underlying demand for our homes,” Dawe said. “The group therefore intends to continue its three-pronged strategy of delivering volume, selling price and operating margin growth.”

The group hiked its interim dividend by 62 per cent, to 6p a share.