Economic Development

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 (Home Builders Federation: ‘The Economic Footprint of UK House Building’ - March 2015).

Overview

Overall

  • We estimated that the economic output from Bellway’s construction activities in 2016/17 is worth £5bn1 (2016: £4.7bn)
  • £186.1m contribution to public finances through tax revenues to central government was made as a result of Bellway’s activities (2016: 168.5m)
  • An estimated £59.3m boost was provided to local authority finances through new Bellway homes - council tax receipts and new homes bonus payments (2016: £45.8m)
  • Bellway spent £1.4bn in our supply chain (2016: £1.2bn), with around £1.25bn remaining in the UK (2016: 1.1bn)

Finance

  • Turnover increased 14.2% to £2,558.6m (2016: £2,240.7m)
  • £106.4m was paid in corporation tax, up 11.8% (2016: £95.2m)
  • £13.6m was paid in National Insurance to government, up 17.2% (2016: £11.6m)
  • £128.9m was paid in salaries to employees, up 9.9% (2016: £117.2m)

New Homes

  • New homes sold increased 10.6% to 9,644 (2016: 8,721)
  • There was an estimated £48.2m2 boost to the local economy through one-off spend from new Bellway home owners, followed by an estimated £231.2m3 ongoing annual local spend by these households
  • 22% of our homes sold were to affordable housing providers (2016: 16%)
  • 32% of our homes were sold to first-time buyers (2016: 32%), helping over 3,000 homeowners get their first foot on the property ladder

Investment

  • £118.2m was committed in community investment through Section 106 and Community
  • Infrastructure Levy in the past year (2016: £147.9m)
  • We directly employ 2,595 people (2016: 2,387)
  • We estimate that between 29,000 and 30,0004 jobs are supported by our construction activities, both directly and also indirectly through sub-contract labour and our supply chain

 

1Calculated by multiplying our costs of sales for 2017 by economic multipliers quoted in studies reviewed by Home Builders Federation (HBF) and Nathaniel Lichfields & Partners in their report The Economic Footprint of UK House Building (2015)

2 Estimates on-off spending on a new home of £5,000 - The Economic Footprint of UK House Building (2015) by Home Builders Federation and Nathaniel Lichfields & Partners

3 Estimated using average UK household weekly expenditure figure of £461 per week (Office of National Statistics Family Spending Survey 2015)

4 Using data/metrics from The Economic Footprint of UK House Building (2015) by Home Builders Federation and Nathaniel Lichfields & Partners

Comparative Data

Percentage of homes developed on Brownfield Sites

Percentage of homes developed on Brownfield Sites

Percentage of homes developed on Brownfield Sites

For the 2017/18 Bellway financial year, we have set a range of targets across our three CR themes (Environment, Construction, and Society and Economy). We have prioritised these targets and published our top 12 priorities across the themes for this financial year. This approach allows us to focus our efforts on the areas of greatest impact, while continuing to work internally on our additional targets.

Although we do not have a publicly published target for economic development this financial year, we are very much committed to the ongoing enhancement of this area of our business and will continue to pursue our non-published internal targets.

 

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 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 has delivered year-on-year growth in our workforce.

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 continuing Help to Buy Schemes in England, Scotland and Wales as well as the introduction of the London scheme has proved to be a huge help to all prospective home buyers. 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 our commitment to building sustainable communities means we continue to deliver social homes across our developments.

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.

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 (Kingshurst; Smith’s Wood; Chelmsley Wood) through improved homes, shops, schools, transport, health and community facilities.

The project works almost like a recycling system. Funding is generated through Solihull Council selling land to the North Solihull Partnership. The Partnership then sells this land, once planning permission is granted, to Bellway. 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 1,413 new homes, including 670 for registered social landlords.
  • Construction of a new high street, retails units, offices, housing and assisted living scheme in Smith’s Wood.
  • £49.7m investing in new village centres in Chelmund’s Cross and Smith’s Wood.
  • £52m investment in new and improved primary schools.
  • £3m investment in improving open spaces and play facilities.
  • £1.8m 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 significantly over the past 5 years (9.2% to 5.7%) and the creation of 300 locally based jobs. In addition total recorded crime has fallen by 26%. 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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