Shares in Bellway and Crest Nicholson have risen this afternoon, following upbeat trading updates which signal that record house prices are filling the pockets of housebuilders.
Developer Bellway has seen its sales reservations continue to climb past their pandemic heights, as demand shows little sign of slowing.
The London-listed real estate firm, whose shares rose nearly three per cent by mid-afternoon, estimated it receives around 253 reservations per week, in comparison with 239 and 158 per week in 2021 and 2020 respectively.
In its latest trading update for the five months to 5 June, Bellway boasted an order book worth more than £2.4bn, up nearly a third year-on-year.
The company has also continued to reward shareholders post-pandemic, increasing its dividend from 35p last year to 45 per share.
It comes after the company held back from paying out a dividend during 2020 amid strained supply chains and a spike in raw material inflation.
“Demand is strong, reservations are ahead of last year and our order book remains substantial,” CEO Jason Honeyman said in a statement.
The housebuilder hailed “favourable” house prices, which have hit new record heights each month of this year, adding that “although modest interest rate rises and increasing fuel costs are contributing to a rise in the cost of living, our affordable and energy efficient new homes provide an attractive proposition for customers.”
It chimes with fellow housebuilder Crest Nicholson’s pre-tax profit forecast hike this morning, which spurred its share price to soar more than 10 per cent by mid-afternoon.
Crest Nicholson told shareholders it now expects a pre-tax profit of between £135m and £140m, after it reported a £107.2m adjusted profit in 2021.