Housebuilder Bellway reported a revenue increase of 8.6% as it makes a strategic shift away from London and into the regions.
In its preliminary results for the year ended 31 July 2019, Bellway said revenue was at £3.2bn, up from £3bn a year earlier. It reported operating profits of £674.9m, up 3.4% from the previous year.
The housebuilder reported a 5.7% increase in the number of homes sold at 10,892 homes, compared with 10,307 a year earlier.
The group is reducing its invested capital in London, with homes in the capital making up 9.3% of completions compared with 10.8% in 2018. This shift has seen London homes drop from 1,118 to 1,010 completions.
Bellway said: “The group will continue to invest in financially viable locations in London where demand is strong. However, the proportion of homes sold in London is likely to reduce in the foreseeable future, reflecting the positive availability of good quality land at attractive returns elsewhere in the country.”
The housebuilder completed 8,442 homes for the private market and 2,450 social homes.
Private market homes were sold with an average price of £333,500 (up from £323,400), and the average price of social housing was £148,800 (up from £129,300).
Help to Buy was used on 36% of completions, with first time buyers making up around two thirds of the customers using the scheme.
Bellway chairman Paul Hampden Smith said: “The ongoing imbalance between supply and demand for affordably priced, good quality housing remains across many parts of the country. Additionally, strong demand for new homes has continued to be supported by the ongoing availability of Help to Buy, together with an environment of low interest rates.”
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