Bellway has seen its share price increase by over 2% following the publication of its latest trading update, despite citing uncertainty in its outlook due to the Middle East conflict.

The housebuilder stated that its trading in the early part of its spring selling season had shown a “marked improvement compared to Autumn 2025”. However, it has seen a moderation in customer demand in April and May in response to the recent increase in mortgage rates.

The firm has said there is renewed upward pressure on building material costs stemming from higher fuel and energy input costs, and it is recording increased prices and the introduction of surcharges by certain supply chain partners.

As a result, Bellway stated that it is actively managing costs pressures through a combination of “discipled procurement, the introduction of new standard house types, and close control of site production and overheads”.

The housebuilder said that its forward order book at 29 May comprised 5,345 homes with a value of £1.57bn, while its land investment has remained “disciplined and highly selective”.

In its outlook, the firm has reiterated its guidance for FY26 volume output of between 9,300 and 9,500 homes, and it added that it remains on track to deliver full-year underlying operating profit within the previously guidance range of £320m and £330m.

Chief executive at Bellway, Jason Honeyman, stated: "Bellway continues to perform robustly in an increasingly challenging market, with customer demand having moderated in recent weeks, after a positive start to the spring selling season. Notwithstanding this, and supported by our forward order book, we are on track to deliver FY26 underlying operating profit within the previously guided range of £320m - £330m.

"The outlook beyond the current financial year remains uncertain, reflecting ongoing geopolitical tensions in the Middle East and a less predictable domestic political environment. Against this backdrop our clear focus on self-help and drive for capital efficiency provides resilience while supporting our strategy to increase cash generation and shareholder returns."

---