Housebuilder returns to buying land

Due to the strength of business following June’s referendum result, Bellway has begun purchasing land once more.

In order to protect itself from potential market volatility following the Brexit vote, the UK house builder has suspended its acquisition programme.

In the four months to early December, reservations grew to 176 per week, an increase of 7%. Over the current financial year, Bellway predict they will build 5% more homes.

They stated: “Whilst remaining mindful of the longer term uncertainty as a result of the vote to leave the EU, the positive autumn trading performance has given the board reassurance to cautiously recommence the group’s programme of land acquisition, following a brief planned hiatus in the weeks after the referendum.”

For the 18 weeks leading up to 4th December, the Newcastle-based company said in its trading update that it had spent £263 million on land upon entering contracts to purchase 40 new sites.

Commenting on the UK property market was Ted Ayres. The company’s Chief Executive stated that housing demand had been boosted by low mortgage rates and the Help to Buy scheme, enabling it to stay strong.

He stated:  “The group has made an encouraging start to the financial year and customer demand for new homes continues to be robust. The strength of the underlying housing market supports further growth.”

Whilst still acknowledging the potential for referendum induced uncertainty to occur in the long-term, the recent trading performance has given Bellway confidence to recommence the land acquisition programme, albeit cautiously.

Today's Conveyancer