SHARES in Bellway and Crest Nicholson rose yesterday after upbeat trading updates, signalling that record house prices are filling the pockets of housebuilders.

Developer Bellway saw its sales reservations continue to climb past pandemic heights, with demand showing little sign of slowing.

The London-listed real estate firm, whose shares rose over three per cent yesterday, estimated it receives around 253 reservations per week, in comparison with 239 and 158 per week in 2021 and 2020 respectively.

In its latest trading update for the five months to 5 June, Bellway boasted an order book worth more than £2.4bn. The company has also continued to reward shareholders, increasing its dividend from 35p last year to 45 per share. It comes after the company held back from paying out a dividend during 2020.

The positive results chime with fellow housebuilder Crest Nicholson, which hiked its pre-tax profit forecast yesterday, spurring its share price to soar 11.2 per cent.

Crest Nicholson told shareholders it now expects a pre-tax profit of between £135m and £140m.

(c) 2022 City A.M., source Newspaper