House builder Bellway is betting on sustained demand in the UK housing market after announcing it has significantly increased its purchases of land in the last six months.
The company spent £355m on sites it has identified as attractive investments with recent purchases focussing on the home counties, with sites in Basingstoke and Kings Hill among its most recent buys.
The investment comes on the back of a positive six months for the company which saw an increase in sales of 16 per cent in the six months to 31 January on the same period last year with operating margins increasing to 20 per cent compared to 15.6 per cent during this period.
Housing revenue has risen by close to 19 per cent to over £820 during the last six months compared to the same period last year and has seen growth of 24.5 per cent in the value of the forward order book to £975m.
The results show strength in the housing sector despite a slowdown in the London market and the tail off from 2014’s surge in activity brought about by Help-to-Buy.
The company has since seen growth in the north of England and Scotland which had a 24 per cent increase in completions year-on-year.