Trading update shows private reservation rate and forward order book down on year prior

Bellway has insisted it is on track to meet previous guidance for underlying operating profit, despite reporting a decline in demand in recent weeks.

In a trading update for the period from 1 February to 29 May 2026, the firm’s CEO, Jason Honeyman, said customer demand had “moderated in recent weeks” in response to rising mortgage rates, after a “positive start to the spring selling season”.

bellway (2)

However, the housebuilder said it remained on track to deliver FY26 underlying operating profit within the previously guided range of £320m-£330m.

The housebuilder’s private reservation rate decreased by 6.2% to an average of 151 per week, compared with 161 in the equivalent period the year prior.

Its forward order book at 29 May 2026 was also down from the same point last year, from 5,759 homes (£1.65bn) to 5,345 homes (£1.57bn).

It also noted that higher fuel and energy input costs were creating inflation in building material costs, with “certain supply chain partners” introducing surcharges.

Bellway said it was managing cost pressures through “disciplined procurement, the introduction of new standard house types, and close control of site production and overheads”. 

Duncan Ferris, investment writer at fintech platform Freetrade, said that while the housebuilder had kept its guidance intact, its “foundations are looking more fragile” due to the “increasingly fraught” trading environment.

He pointed to the company’s forward order book and private reservation rates “lagging behind the same point last year”, as well as the firm’s apparent caution around rising material costs.

“Overall, the message is one of cautious reassurance,” he said. “Bellway is battling through tough headwinds to meet guidance and continue returning cash through share buybacks and dividend payouts. But the business sounds edgy, and signs of sector recovery are needed to help it do more than simply weather the storm.”

Bellway reiterated its guidance for volume output of between 9,300 and 9,500 homes.

In response to the current headwinds, Bellway said it was “maintaining a sharp focus on the monetisation of our well-invested land bank and work-in-progress position through FY26 and beyond to support improvements in asset turn and cash generation”.