Reservations moderated after a stronger early spring, with Bellway, the UK housebuilder, reporting the private reservation rate down 6.2% to 151 per week (2025: 161), overall reservations at 186 per week (2025: 196), cancellations at 10%, and a forward order book of 5,345 homes valued at £1,570m at 29 May (1 June 2025: 5,759 homes, £1,650m).
"Bellway continues to perform robustly in an increasingly challenging market," Chief Executive Jason Honeyman said.
Management attributed the slowdown to a recent rise in mortgage rates and warned of renewed upward pressure on building material costs from higher fuel and energy inputs, and said it is offsetting pressures through disciplined procurement, new standard house types and tighter control of site production and overheads.
Land investment remained selective with 6,744 plots contracted since 1 August 2025 at a total contract value of £363m and a strategic land bank of around 47,000 plots, over half with positive planning, supporting a medium-term target of over 20% of volumes from strategically sourced land.
The balance sheet is described as well capitalised with net debt of £236m at 29 May (2025: £73m), expected adjusted gearing of 5-10% at year end, a progressing £150m buyback, an increased interim dividend of 23.0p and expected underlying dividend cover of around 2.5 times for FY26.
The group's next scheduled trading update, covering the financial year ending 31 July, is due on 11 August.
