Bellway is expecting to sell more than 9000 homes in its current financial year, the FTSE 250 builder has said.
The company, led by Jason Honeyman, said there is strong underlying demand for new homes, with a 6% increase in the reservation rate to 210 per week from August 1 to November 29.
It added that the forward sales position is “substantial”, with an order book comprising 6,186 homes and a value of £1.8 billion.
The firm expects to complete around 9400 home sales in the year to July 2021. That is up from 9000 it guided in October.
Estate agents and housebuilders suffered at the start of the lockdown in March, as people were urged to avoid moving where possible, viewings stopped and some construction sites closed.
Restrictions for the housing market were eased in May.
Honeyman said Bellway benefited from pent-up demand after the first lockdown, and a number of people wanting more space following the lockdown.
The firm, like rival housebuilders, has also seen buyers enticed by the stamp duty holiday launched in July.
Honeyman said: “Bellway is in a robust position and notwithstanding the recent widespread ‘lockdown’ restrictions throughout the country, sales demand is encouraging, and the order book is strong. We have substantial cash resources, considerable ability to continue investing in land and with our solid operational structure, we are determined to return the Group to its strategy of delivering long-term and sustainable growth.”
However, the firm said: “Longer term, risks remain with regards to the change in Help-to-Buy and stamp duty rules, together with the potential for ongoing economic uncertainty, both as a result of the disruption caused by Covid-19, together with the expiry of the ‘Brexit’ transition period on 31 December 2020.”
The stamp duty holiday will finish at the end of March 2021.
