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UK homebuilder Bellway has reported a moderation in customer demand after a strong start to the spring selling season, as rising fuel and energy costs continue to pressure the housing sector. The company said higher construction expenses and softer buyer activity, driven partly by elevated mortgage rates, are creating a more challenging operating environment. Despite these headwinds, Bellway has maintained its full-year operating profit and housing delivery forecasts. The company also highlighted uncertainty surrounding global geopolitical developments and the domestic political landscape, which could influence market conditions in the months ahead.
Bellway, one of the UK's major housebuilders, has said customer demand has eased following a positive start to the spring selling season, while rising fuel and energy prices continue to increase construction costs across the housing sector.
The latest trading update comes a few months after the company warned about pressure on profit margins, reflecting challenges being faced by several UK homebuilders. The sector has been dealing with higher input costs linked to ongoing geopolitical tensions in the Middle East, while elevated mortgage rates have affected affordability and weighed on homebuyer demand.
Bellway noted that although market conditions have become more challenging, it continues to expect underlying operating profit to be between GBP 320 million and GBP 330 million for the financial year ending in July 2026. The company also maintained its forecast to deliver between 9,300 and 9,500 homes during the period.
Chief Executive Jason Honeyman indicated that visibility beyond the current financial year remains limited. He said the outlook continues to be affected by geopolitical tensions in the Middle East as well as a less predictable political environment in the UK.
The wider UK housing market has faced several pressures over the past year, including higher borrowing costs, inflationary impacts on construction materials and labour, and fluctuating consumer confidence. While demand showed signs of improvement earlier in the year, developers have remained cautious about the pace of recovery amid ongoing economic uncertainty.
By maintaining its profit and delivery targets despite these conditions, Bellway has signalled confidence in its current order book and operational performance. However, the company acknowledged that cost pressures and market uncertainty are likely to remain key factors influencing the sector in the near term.
Source Reuters
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