Bellway: Issues with government planning reforms cause delays
The government recently announced an overhaul of Britain's clunky planning system, promising to unleash 'seismic change' on the country's construction process.
The National Planning Policy Framework (NPPF) has been changed under Labour's reforms, with new mandatory housing targets as well as provisions for affordable housing, infrastructure, and green space.
Bellway said it expected the plans to help the industry 'in the years ahead', bur warned that said the changes have caused 'delays to planning decisions' as local authorities 'take time' to adopt new local plans and the updated NPPF.
The FTSE 250 firm added that the government's 'ambitious' housing targets must be complemented to help for housebuyers.
The price-to-earning ratio for housing in the UK is at its lowest in 20 years, making it difficult for Brits to get on the housing ladder without financial aid.
Number of new builds rises
Bellway reported a better year of construction than expected as the tough conditions of the last few years started to improve.
Total housing completions increased by 14.3 per cent to 8,749 homes in the year ended July 31, up from 7,654 in 2024, the company told markets this morning.
The average selling price increased to £316,000, from £307,909 in 2024.
Both figures were ahead of Bellway's expectations for the year.
The construction industry faced a tough time during and after the pandemic as cost inflation in materials and labour ate into margins.
CEO Jason Honeyman said the housebuilder has delivered a 'solid performance' despite the 'ongoing headwinds'.
'There was good growth in volume output and an improvement in underlying margin which are set to drive a strong increase in profits for [the year,' he said.
Bellway's underlying operating margin is expected to approach 11 per cent this year, up from 10 per cent in 2024.
Honeyman said: 'We have entered the new financial year with a healthy forward order book and outlet opening programme and, if market conditions remain stable, we are well-positioned to deliver further growth in [2026].
'We have a high-quality land bank and the operational capacity across the Group to support our plans to deliver long-term volume growth.'
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