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Bellway expects constrained house sales until coronavirus lockdown restrictions are lifted

Published: 16:37 09 Jun 2020 AEST

Bellway PLC -

Bellway PLC (LON:BWY), the FTSE 250-listed housebuilder, said it has reopened all of its sales centres in England and Wales while limited work has now restarted on 230 construction sites.

The builder said there has been a gradual increase in customer interest since sales activity resumed in June, but it expects sales to remain constrained until coronavirus (COVID-19) lockdown restrictions are fully lifted.

In a trading update, Bellway said net reservation rates fell to 71 homes per week in the ten weeks from March 23 to May 31, 2020, down from 231 per week a year earlier, though prices have remained firm.

Financial guidance also remains suspended, though Bellway said the resumption of its build programmes should allow it to increase the number of completions in late summer and the autumn.

Currently, Bellway is using one tradesperson operating in a home at any given time but intends to increase this to one per floor in coming weeks. Home viewings, meanwhile, are limited to single family groups and by appointment only. 

Orders currently stand at 6,038 homes (2019: 6,312) with a value of £1,57bn (2019: £1.64bn).

Net bank debt was £157mln at end June, with bank facilities available up to £545mln, and the builder is eligible for £300mln under the government’s COVID-19 support scheme, which is undrawn.

Bellway noted that all furloughed employees have been kept on full pay throughout April and May.

 In the statement, Jason Honeyman, Bellway’s chief executive said:  "Our priority remains the health, safety and wellbeing of our colleagues, customers and subcontractor workers. 

"With this in mind and following updated Government guidance with regards to restarting the housing market, we have carefully and gradually recommenced onsite construction and sales activity in England and Wales, whilst introducing strict social distancing requirements.”

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