US EditionBellway shares hit as full-year earnings outlook disappoints
Bellway cut its operating margin guidance to 10.5% amid mortgage market volatility linked to the Iran conflict, while raising housing completions and average selling price forecasts.
- Housebuilder Bellway shares tumbled 12% after the group downgraded its full-year operating margin expectation to around 10.5% and flagged volatility in the mortgage market linked to the Iran conflict.
- Management attributed the margin erosion to increased administrative costs, driven by higher employee salary expenses and the company's new timber manufacturing division.
- Despite margin pressure, Bellway delivered a robust first-half performance with housing completions rising 2.7% to 4,702, while remaining on track for underlying operating profit between £320m and £330m.
- Mortgage availability has shrunk by 21% since March 6, according to Moneyfactscompare, with some average fixed mortgage rates topping 5.5% as market volatility intensifies.
- Oli Creasey, head of property research at Quilter Cheviot, warned that prolonged mortgage market volatility could become "meaningful" for housebuilders, though the Iran conflict has not yet materially impacted trading.
11 Articles
11 Articles
Bellway cheers sales boost - but warns on Middle East
A housebuilder has hailed its resilience in a “challenging” market after notching higher sales – but warned the Middle East conflict could yet knock its progress. Bellway saw completions rise 2.7 per cent to 4702 homes in the six months to January 31. Bosses say the uptick defied pre-Budget jitters, with the…
Bellway ‘robust’ but shares fall on Middle East impact – Northern Financial Review
Shares of Newcastle-based housebuilder Bellway plc fell around 10% after it published “robust” first-half results but its CEO warned the ongoing conflict in the Middle East “heightens the risk of both inflationary cost pressures and an impact to customer demand.” Bellway CEO Jason Honeyman said the firm has “already seen volatility return to the mortgage market.” Publishing interim results for the half year ended January 31, 2026, Bellway said f…
Housebuilding stocks slump, Bellway issues Iran mortgage warning
Shares in Bellway slumped eight per cent after it warned the Iran war is causing mortgage “volatility,” as a host of leading housebuilders were dragged down with it. FTSE 100 housebuilders Barratt Redrow, Berkeley and Persimmon were all down at least one per cent on Tuesday’s early trading, with the latter taking a two per cent dip. On the FTSE 250, Bellway plummeted by eight per cent to 1,954p and was joined by housebuilder Vistry, which fell …
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