Government planning changes causing delays for Bellway construction projects

Bellway, a prominent FTSE 250 firm, has announced a solid performance for the year ended July 31, 2025, with total housing completions increasing by 14.3% to 8,749 homes. This represents an increase of 1,095 homes from the previous year's total of 7,654 homes.

The increase in housing completions was a result of improvements in construction conditions after tough conditions in previous years. However, the construction industry still faced challenges during and after the pandemic, with cost inflation in materials and labour impacting margins.

Despite these headwinds, Bellway delivered a strong performance, with good growth in volume output and an improvement in underlying margin. The company's underlying operating margin is expected to approach 11 per cent this year, up from 10 per cent in 2024.

The government recently announced a significant overhaul of Britain's planning system, promising seismic change. Bellway believes that the government's ambitious housing targets must be complemented to help housebuyers. The company expects the changes to help the industry in the years ahead but warns of delays to planning decisions due to local authorities taking time to adopt new local plans and the updated National Planning Policy Framework (NPPF).

The average selling price of homes built by Bellway increased to £316,000 in the year ended July 31, 2025, up from £307,909 in 2024. This increase in average selling price, along with the total housing completions, was ahead of expectations for the year.

Bellway enters the new financial year with a healthy forward order book and outlet opening programme, according to CEO Jason Honeyman. The company has a high-quality land bank and the operational capacity across the Group to support plans for long-term volume growth.

It's worth noting that the price-to-earnings ratio for housing in the UK is at its lowest in 20 years, making it difficult for Brits to get on the housing ladder without financial aid. This underscores the importance of the government's efforts to streamline the planning process and increase housing completions.

The implementation of planned changes to the UK planning system to reduce delays primarily comes from government planning authorities and agencies overseeing construction and development regulation. The use of digital tools and Building Information Modeling (BIM) by architects, engineers, and project managers also contributes to delay reduction efforts, as seen in broader infrastructure and project planning contexts.

If market conditions remain stable, Bellway is well-positioned to deliver further growth in 2026. The company reported its results to markets this morning, marking a positive start to the new financial year.