𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Interest in homebuying dipped in April and May in response to a jump in mortgage rates, and building costs have climbed following the Middle East energy shock, housebuilder Bellway said.

The Newcastle-based company said recovery in the housing market could slow as a result of the challenges.

Mortgage rates shot up following the onset of the US-Israel war with Iran at the end of February and many mortgage deals were pulled amid financial uncertainty prompted by the conflict.

This led to a slowdown in customer demand for homebuying followed by a positive start to the spring season, Bellway said.

Private reservations for new homes decreased to 151 per week between February and May 29, down from 161 in 2025.

Meanwhile, higher fuel and energy prices following the conflict have been pushing up the cost of building materials, according to the firm.

It noted that some suppliers had introduced surcharges in a bid to cover the increased costs.

Chief executive Jason Honeyman said: “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.

“The outlook beyond the current financial year remains uncertain, reflecting ongoing geopolitical tensions in the Middle East and a less predictable domestic political environment.”

Bellway said it was still expecting to build between 9,300 and 9,500 homes over the 2026 financial year to the end of July.

This would be more than the 8,750 homes completed the previous year.

It was also sticking to previous expectations of reporting an underlying operating profit of between £320 million and £330 million.