# UK’s Bellway to buy back shares, hike social housing output
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-28
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK's Bellway to Increase Output in Social Housing
Meta Description: Bellway plans to increase social housing production despite market challenges. CEO Jason Honeyman aims to revive demand with affordable homes.
URL: https://financedigest.com/uks-bellway-to-buy-back-shares-hike-social-housing-outputhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-28t074240z2lynxmpej2r07lrtroptp4bellway-results-1736814246976-compressed.jpg)

By Aby Jose Koilparambil

(Reuters) -UK’s Bellway will build a bigger share of homes in its social housing programme this fiscal year, its chief said on Tuesday, after the housebuilder announced a 100 million pound ($123.1 million) share buyback despite a fall in interim profit.

A recent uptick in buyer sentiment has not entirely allayed slowdown concerns in the British housing sector, amid higher mortgage rates and economic woes, forcing housebuilders to turn to cheaper homes in a bid to revive demand.

Chief Executive Jason Honeyman told Reuters the company started hastening construction in its social housing programme in October after a [demand slump](https://www.financedigest.com/samsungs-quarterly-profit-plunges-to-8-year-low-on-demand-slump.html "Samsung’s quarterly profit plunges to 8-year low on demand slump").

September’s ill-timed mini-budget from then-finance minister Kwasi Kwarteng led to a [rout of government bonds](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way"), pushing up the cost of borrowing for lenders, and causing turmoil in the mortgage market.

Honeyman said [homes built in the programme](https://www.financedigest.com/uk-to-launch-new-billion-pound-home-insulation-programme.html "UK to launch new billion-pound home insulation programme") would make up more than quarter of overall output in the fiscal year ending on July 31. [Affordable homes](https://www.financedigest.com/still-living-at-home-a-third-of-the-nation-cant-afford-to-rent.html "Still living at home? A third of the nation can’t afford to rent") were 18.4% of total production in the previous fiscal year.

Bellway, which [builds everything from one-bedroom apartments](https://www.financedigest.com/a-tour-of-the-tipi-apartment-buildings.html "A tour of the Tipi apartment buildings") to six-bedroom family homes and luxury penthouses, said there was a moderate improvement in bookings since January.

It retained its annual production outlook of 11,000 homes, about 2% [lower than a year](https://www.financedigest.com/spains-inflation-to-be-lower-this-year-than-in-2022-minister.html "Spain’s inflation to be lower this year than in 2022 -minister") ago.

Potential rate cuts next year by the [Bank of England](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") would improve affordability and housebuilders such as Bellway would welcome such a move with open arms, Adam Vettese, an analyst at social investing network eToro, said in a note.

The FTSE midcap firm said its forward order book by [March 12 was 1.60 billion](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone") pounds, well below the 2.21 billion of a year ago.

Its half-yearly underlying pre-tax profit fell about 5% to 312.1 [million pounds](https://www.financedigest.com/uk-gives-bbc-world-service-20-million-pounds-to-support-english-language-broadcasting.html "UK gives BBC World Service 20 million pounds to support English language broadcasting").

Bellway [shares edged](https://www.financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worries.html "European shares edge higher on healthcare lift, weak China data stokes worries") up about 1% in morning trade.

($1=0.8121 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---