In its latest results Chief Executive Jason Honeyman said: “Build cost inflation was at low single-digit levels during the first half of the financial year but increased in the second half, principally reflecting greater pressure on material and energy costs amid heightened geopolitical and supply chain uncertainty.
“The Group has received price increase requests from suppliers and subcontractors but has continued to negotiate robustly, limiting the impact on agreed rates.
“Product availability across the Group is currently good, and our procurement arrangements retain flexibility to benefit from any reduction in input costs.”
Bellway is anticipating build cost inflation of 3 to 4% next year which is expected to lead to a drop in build volumes in 2027 to between 9,000 and 9,400 homes from the current 9,695.
Average selling prices for the year ended July 31 2026 increased to £324,404 from £316,412 pushing group revenue up to £3,162.2m from £2,782.8m.
Pre-tax profits increased to £270.2m from £221.9m after taking account of legacy building safety provisions of £35.2m.
Bellway said is intends to return a further £150m to shareholders in 2027 through a share buyback programme.
Honeyman said: “Against a backdrop of near-term economic uncertainty, our priorities remain clear: allocating capital with discipline, maintaining a strong balance sheet with low gearing and investing selectively in land to support future growth.
“The £150m FY27 share buyback programme announced today is expected to take total dividends and share buybacks across FY26 and FY27 to c.£450m, reflecting our financial strength, cash generation and commitment to delivering long-term shareholder value.
“Bellway has the financial strength, operational capability and land bank to respond as market conditions improve and increase the delivery of much-needed new homes over the medium term.”
