Bellway, one of the UK’s largest housebuilders, expects to increase home completions in its new financial year after rising sales and higher average prices lifted its profit margins.

For the year ended July 31, Bellway completed 8,749 homes — a 14.3% increase from last year — with an average selling price of about £316,000 (\$425,304), slightly exceeding expectations. The company now forecasts building around 9,200 homes by July 2026, aiming to boost cash flow and shareholder returns.

The upbeat outlook comes despite challenges in Britain’s housing market, including high interest rates, persistent inflation, and planning delays. The positive update lifted Bellway’s London-listed shares 1.9% to 2,484 pence in early trade, outperforming the UK housing index’s 1.4% rise. Shares of rivals Taylor Wimpey, Barratt Redrow, and Berkeley also edged higher.

CEO Jason Honeyman said Bellway entered the year with a “healthy forward order book” of 5,307 homes and a strong pipeline of new site openings. “If market conditions remain stable, we are well-positioned to deliver further growth in FY26,” he noted.

RBC Capital Markets analysts said the market could improve further over the coming year, presenting “upside risks to company guidance.” UK home sales surged early in 2025 as first-time buyers rushed to benefit from temporary stamp duty relief before it expired on March 31.

Bellway expects its underlying operating margin for fiscal 2025 to be close to 11%, up from 10% a year earlier. Full results will be published on October 14.