FTSE 250-listed Bellway PLC (GB:BWY) reported revenue of £2.35 billion, beating analyst expectations of £2.27 billion and signalling a positive shift in the UK housing market. According to its trading update, the company witnessed an improvement in consumer confidence in 2024, driven by lower mortgage interest rates and stable house prices. Bellway shares gained nearly 3% as of writing.
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The positive outlook is further supported by the new Labour government’s plans to address the UK’s housing shortage through eased planning restrictions and increased land supply. The Labour government aims to construct 1.5 million new homes over the next five years, prioritizing affordable and social housing. As a result, Bellway expects to return to growth in 2025 if market conditions stay stable.
Bellway is a British property developer, specializing in residential properties.
More From Bellway’s Trading Update
In Fiscal 2024, Bellway completed 7,654 homes at an average selling price of £308,000, modestly surpassing its earlier guidance. The company’s forward order book grew to 5,144 homes valued at £1.41 billion as of July 31, 2024, up from 4,411 homes worth £1.19 billion a year earlier. This, combined with the company’s land bank and outlet opening program, underscores its goal of volume growth in 2025 and beyond.
Meanwhile, Bellway’s annual underlying operating margin is projected to be around 10% in FY24, down from 16% last year.
Are Bellway Shares a Good Buy?
BWY stock has received a Moderate Buy rating on TipRanks, backed by four Buy and two Hold recommendations. The Bellway share price forecast is 3,116.80p, which is 14.17% higher than the current trading level. Year-to-date, Bellway shares have gained 7.5%.
