Bellway seals Blindwells deal, profits drop.

Bellway, in partnership with Hargreaves Land, is set to bring another 200 new homes to Blindwells, a sustainable new town in East Lothian. The deal involves the conditional sale of plot 6, covering 16.7 acres near the proposed town centre, aiming to provide 152 private homes and 65 affordable homes of various sizes and types.

This venture follows Bellway’s ongoing Princes Gate project at Blindwells, which began in 2021. Meanwhile, Hargreaves Land has submitted a planning application to East Lothian Council for the Blindwells town centre, hoping for approval by the end of 2024. The proposed development includes shops, offices, restaurants, a supermarket, and communal spaces around a newly created loch.

Gabriel Fella, development surveyor at Hargreaves Land, expressed excitement about the rapid growth of Blindwells and the continued partnership with Bellway. Fella highlighted how residents of Blindwells can enjoy a lifestyle surrounded by nature, amenities, workspaces, and relaxation spots. The ongoing efforts aim to further enhance retail, leisure, and commercial opportunities in the area.

Mark Sinclair, land director at Bellway Homes Ltd (Scotland East), emphasized the strategic location of the new plot, offering easy access to main roads, public transport, Edinburgh City, renowned golf courses, and award-winning beaches in East Lothian. Sinclair noted the diverse lifestyle options in the region as a key factor driving demand in the local housing market.

Despite challenging trading conditions leading to a 57% drop in profits for Bellway in the year ending on July 31, the company remains optimistic about the future. Bellway pointed to improving consumer confidence, lower interest rates, and rising wages as positive indicators. The forward order book for 2024 showed growth, with 5,144 homes valued at £1.4bn, compared to 4,411 homes in 2023.

The decline in profits was attributed to a 30.1% decrease in completions, a similar drop in revenue, and significant reductions in operating and pre-tax profits. Bellway cited cost inflation, promotional incentives for buyers, and slower market conditions since 2022 as factors affecting site profitability.

Despite the challenges, Bellway highlighted the increase in customer demand during the second half of the year, attributed to lower mortgage rates improving affordability and driving more reservations. This positive trend gives hope for the future of the company and the housing market as a whole.