Economic Development

We are committed to the Prompt Payment Code and target to pay all creditors within terms agreed with each supplier.

All creditors have been paid within agreed terms in 2014/15.

We will aim to deliver at least 5% growth in the number of homes sold, helping address the UK housing shortage

2015/16 growth in homes sold was 12.5%.

 

The UK house building industry is a key component of the national economy - every 50,000 new homes built adds approximately 0.5% to the national GDP, while every £1 spent on housing puts £3 back into the economy. The industry’s contribution to social and economic sustainability has been highlighted in a report commissioned by the Home Builders Federation (‘The Economic Footprint of UK House Building’ - March 2015), with headline figures including:

•        £12.5bn invested in land and building for homes.

•        £5.5bn spent in the supply chain, 90% of which stayed in the UK.

•        More than 600,000 job created.

•        £2bn contribution to public services through tax paid and infrastructure improvements

•        £3bn investment in affordable housing.

•        £131m invested in open spaces, community, sports and leisure facilities.

•        £3.8bn spent in the local economy by residents of new homes.

As the UK’s 4th largest house builder by volume, we are committed to helping satisfy the supply/demand imbalance in the UK housing market. We also have an important role in delivering these added-value benefits to local communities and the wider economy through job creation, supporting local businesses via our supply chain, investing in community services and infrastructure and through the provision of high quality homes.

Employment

A thriving housing market and a prosperous economy are intrinsically linked. When we construct new homes and communities we create direct employment opportunities at Bellway and the strong market conditions during the year has meant further growth in our workforce – we now employ an average of 2,366 people, up 9% on last year (2014/15 - 2,164). We have also continued to increase the number of apprentices and graduates within the business by 14% to 83 people (2014/15 - 73).

Number of Bellway employees

Suppliers

Our construction activities also provide indirect employment opportunities through our sub-contracting arrangements and companies within our supply chain. These suppliers and sub-contractors are crucial to the efficient operation of our business. We nurture strong and long term relationships so we can optimise the quality and prices of our homes for customers and simultaneously ensure that suppliers and sub-contractors are paid in a timely manner. We support these relationships with our membership of the Prompt Payment Code, recognising our commitment to paying our suppliers within clearly defined terms.

Customers

A varied range of houses and apartments is important to enable customers to identify the right home for their needs and budget. However, affordability is often an obstacle for customers wishing to get onto the property ladder and/or moving up to larger properties as their needs change. The extension of the Government’s Help to Buy Scheme in England and the introduction of the London scheme in February has proved to be a huge help to all prospective purchasers and 2,626 of our customers purchased their home using Help to Buy in 2015/16. We also continue to provide a part-exchange service for existing home owners, a facility that can help remove some of the uncertainties surrounding home buying chains, and in 2015/16 7% of our customers took advantage of this service.

Our continued commitment to building sustainable communities saw us deliver 1,376 social homes in (2014/15 - 1,574). This represents 16% (2014/15 - 20%) of our legal completions and helps to support social inclusion within the developments and communities we create.

Number of Bellway Homes sold Number of Social Completions

Shareholders

Our shareholders are key to the long term viability and success of Bellway. We endeavour to maintain a strong dialogue with investors and keep them fully informed of our activities and strategy – our latest annual report and accounts can be viewed here.

Our strategy is to build long-term shareholder value through sustainable growth, combined with a strong focus the payment of an increasing dividend, together with an ongoing increase in net asset value ('NAV'), arising from reinvestment of retained earnings in order to secure further growth.

For the 2015/16 year, strong trading performance has resulted in the NAV of the Group growing by 18.4% to 1,522p per share (2014/15: 1,286p) and enabled a recommended 40.3% increase in the total dividend for the year to 108.0p per share (2014/15: 77.0p).

Case Study

North Solihull Partnership

Through our West Midlands division, Bellway is involved in North Solihull Partnership, one of the UK’s biggest regeneration programmes aimed at transforming three North Solihull wards through improved homes, shops, schools, transport, health and community facilities.     

The Regenerating North Solihull project works almost like a recycling system. Bellway work with Solihull Council to gain planning permission on land within the regeneration area. The resultant development is then valued and purchased by Bellway with the land receipt transferred to the North Solihull Partnership. The money from these sales is put back into the project, providing the funding for new primary schools, Village Centres and improvements to infrastructure and green space.

Key outputs already include:

  • The provision of 1,260 new homes, including 685 for registered social landlords – in total 1,655 new homes have planning permission awarded.
  • Construction of a new high street, retails units, offices, housing and assisted living scheme in Smith’s Wood.
  • Enterprise centre and health centre in Chelmund’s Cross.
  • £3m investment in improving open spaces and play facilities.
  • £1.6m investment in social and economic projects.

The partnership has already seen improved employment opportunities with claimant rates for the North Solihull regeneration wards falling from 5.3% to 4.6% (for 18-24 year olds the drop has been from 10.6% to 8.2%). 12 Solihull residents have been offered apprenticeships with Bellway and 47% of the total site labour has been recruited from the local area.

 

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