Published by Global Banking & Finance Review®
Posted on March 24, 2026
2 min readLast updated: March 24, 2026
Add as preferred source on GoogleBellway has downgraded its full-year operating margin expectation to 10.5% for fiscal 2026 while maintaining volume guidance of 9,300–9,500 homes amid inflationary pressures and mortgage market volatility.
March 24 (Reuters) - British homebuilder Bellway trimmed its profit margin outlook on Tuesday and echoed warnings on risks to the housing market from the Middle East conflict, sending shares down over 8%.
British builders are bracing for a year of margin pressure, with the expected recovery in the housing market now under threat from renewed risks of interest rate hikes squeezing consumer demand and rising building costs stemming from the fallout from the Iran war.
Chief Executive Jason Honeyman noted that volatility had already returned to the mortgage market, though the situation had not materially impacted trading so far.
RISING COSTS, AFFORDABILITY PRESSURES WEIGH ON MARGINS
Bellway now aims for its operating margin for the year through July of around 10.5%, down from a previous forecast of 11%, joining rivals Taylor Wimpey and Vistry in flagging margin pressures from cost inflation and reduced affordability.
The company's underlying operating profit rose 1.5% to 159 million pounds ($213.47 million) in the six months to January 31, but an increase in sales incentives to about 5% of selling prices from around 4% a year earlier pressured margins.
Bellway, which builds everything from social housing to luxury penthouses, said incentives, such as discounts and help with buyers' deposits, played a key role in supporting reservation rates early in the crucial spring selling season.
Trading was broadly stable across the first half, with a notable pickup in January, it said, as the clearing of budget‑related uncertainty brought some hesitant buyers back to the market.
Bellway raised its fiscal 2026 home completions target to between 9,300 and 9,500 from 9,200 previously, though its forward order book as of March 13 fell to 1.55 billion pounds from 1.58 billion pounds a year earlier.
It maintained its underlying operating profit guidance of 320 million to 330 million pounds for fiscal 2026.
($1 = 0.7448 pounds)
(Reporting by Raechel Thankam Job and Simone Lobo in Bengaluru; Editing by Rashmi Aich and Tomasz Janowski)
Bellway lowered its operating margin outlook due to risks from potential interest rate hikes and higher building costs stemming from geopolitical conflict.
Bellway now expects its operating margin for the year through July 2026 to be 10.5%, down from the previous expectation of 11%.
The ongoing conflict increases inflationary cost pressures and may affect customer demand, adding volatility to the mortgage market.
Bellway expects full-year volume output to be ahead of previous guidance, between 9,300 and 9,500 homes, supported by demand-boosting incentives.
According to Bellway's CEO, the conflict hasn't materially impacted trading so far, though risks remain.
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