UK homebuilder Bellway sees moderating demand, higher costs
Bellway Faces Cooling Demand and Rising Costs in UK Housing Market
Customer Demand Trends
June 9 (Reuters) - British homebuilder Bellway said on Tuesday customer demand has cooled after a positive start to the spring selling season, with rising building costs from higher fuel and energy prices adding to challenges in the housing sector.
Profit Margin Warnings and Sector Challenges
Impact of Rising Costs and Geopolitical Tensions
The update comes after Bellway's profit margin warning in March, mirroring moves by rivals such as Taylor Wimpey, as the sector grapples with mounting energy and input costs stemming from the Iran war, while demand softens as mortgage rates climb.
CEO Statement on Market Outlook
"The outlook beyond the current financial year remains uncertain, reflecting ongoing geopolitical tensions in the Middle East and a less predictable domestic political environment," CEO Jason Honeyman said in a statement.
Financial Forecasts and Targets
Operating Profit and Volume Output
The company maintained its underlying operating profit forecast of £320 million-£330 million ($427.65 million-$441.01 million) and volume output target of 9,300-9,500 homes for the year ending July 2026, despite the challenging conditions.
Currency Exchange Rate
($1 = 0.7483 pounds)
Reporting Credits
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
