Bloomberg News

Bellway Rises the Most in More Than Two Months on Sales Gain

June 10, 2011

(Updates with closing share price in final paragraph.)

June 10 (Bloomberg) -- Bellway Plc gained the most in more than two months after the U.K. homebuilder said sales and visitor numbers rose as demand increased in and around London.

The shares climbed 2.7 percent in London trading, the most since April 1. Weekly sales in the four months through May advanced 9 percent from a year earlier to 111 units, the Newcastle, England-based company said today in a statement. Average prices gained 4 percent to 182,000 pounds ($297,000).

“The way that sales are going at the moment reflects a typical housing year as far as we’re concerned,” Finance Director Alistair Leitch said in an interview. “We’ve had a good spring selling season and then it quietens off during the summer. We look forward to the autumn and hopefully it’ll rebound again.”

The U.K.’s coalition government plans to help homebuilders like Bellway increase the number of properties they build by releasing enough state-owned land to develop as many as 100,000 unit. Britain faces a shortfall of about 1 million homes within four years, with London worst affected, according to Savills Plc.

Bellway advanced 19 pence to 716 pence, raising the company’s market value to 865 million pounds.

--With assistance from Simon Packard in London. Editors: Andrew Blackman, Ross Larsen.

To contact the reporter on this story: Christopher Spillane in London at cspillane3@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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