The return of a first-half dividend at Bellway is the latest example of how rapidly the housing sector has rebounded from the pandemic.
Put in deep freeze a little under a year ago as the first set of coronavirus restrictions were imposed, the Government has done the equivalent of slapping the housing market in the microwave to defrost it rather than leaving it to one side to slowly thaw out.
“Measures like the stamp duty holiday, a new mortgage guarantee scheme and the continuing influence of Help to Buy, coupled with pent-up demand and a lockdown-induced realisation for many people that they wanted more space in different surroundings has helped super-charge demand,” said AJ Bell’s Russ Mould.
“This explains how Bellway completed the sale of a record number of homes in the six months to 31 January 2021, though a modest drop in pre-tax profit demonstrates how extra Covid-related costs ate into its significantly higher revenue.
“Bellway has continued to take advantage of depressed valuations on land by buying up plots for development. This investment should pay off down the line.
“Fairly bullish expectations for the rest of the year are underpinned by a strong forward order book and a robust balance sheet.”