Bellway
Bellway p l c is a residential property developer and housebuilder based in Newcastle upon Tyne, England.[3] It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
| Formerly | Globemaster Services Limited (1978–1979)[1] |
|---|---|
| Company type | Public |
| LSE: BWY FTSE 250 component | |
| Industry | Housebuilding |
| Founded | 1946 |
| Headquarters | Newcastle upon Tyne, England, UK |
Key people | Paul Hampden Smith (Chairman) Jason Honeyman (CEO) |
| Revenue | £3,406.6 million (2023)[2] |
| £505.3 million (2023)[2] | |
| £365.0 million (2023)[2] | |
Number of employees | 3,130 (2023)[2] |
| Website | bellway |
History edit
The company was founded in 1946 by John Thomas Bell and his sons John and Russell as a housebuilder operating in Newcastle upon Tyne under the name John T. Bell & Sons.[4] In 1951 Kenneth Bell, the youngest of the brothers, joined the business.[5]
The three brothers also developed commercial property in the 1950s and their company, North British Properties, was floated on the London Stock Exchange in 1961. In 1963, North British acquired John T Bell in a reverse takeover.[6]
The Bell family managed to tap into the huge demand for private housing that followed World War II promoting developments such as Cramlington New Town, built in partnership with William Leech in the early 1960s.[7] Bellway developed a substantial housebuilding operation in the north of England and sales reached 1,500 units in 1972 with a further 500 in the newly formed Australian and French subsidiaries. In 1973, Bellway moved into the south-east with the purchase of A & R A Searle. The group continued to expand through England in the 1970s but its overseas operations were less successful and were eventually closed.[8]
In 1979, the "Bellway" private housebuilding business was demerged from the commercial side of the business under the leadership of Kenneth Bell. In 1981 Bellway and fellow Newcastle housebuilder William Leech announced a merger but it was called off within days: "the lifestyle of the two firms looked pretty incompatible".[9]
Diversification had not been wholly satisfactory; Ken Bell became largely non-executive and the day-to-day running of the business was assumed by Howard Dawe. Dawe reorganised the business, resumed the regional expansion on a more profitable basis and increased the company's focus on regeneration sites.[8]
Family involvement with the company ended with the death of Kenneth Bell in 1997.[10]
In 2018, the company was reported to be on track to build 10,000 homes for the first time in its history. This activity was attributed to low interest rates and good mortgage finance providing buoyancy to the housing market.[11]
In common with other housebuilders, Bellway was adversely affected by the COVID-19 pandemic in the United Kingdom during 2020; in June, it reported sales had fallen by more than two-thirds since the introduction of lockdown, and expected "year-on-year sales activity to be severely constrained until a time when 'lockdown' restrictions are further lifted."[12] A month later, it announced plans to cut up to 175 jobs, around 6% of its 3,100-strong workforce.[13]
Amid a housing slump in August 2023, Bellway announced 90 redundancies and the closure of its London Partnerships and South Midlands divisions.[14]
In February 2024, Bellway was among eight UK house-builders targeted by the Competition and Markets Authority in an investigation into suspected breaches of competition law. The CMA said it had evidence that firms shared commercially sensitive information with competitors, influencing the build-out of sites and the prices of new homes.[15]
Fire safety concerns edit
A major fire broke out in July 2015 at a housing development constructed by Bellway in Canterbury, which destroyed and damaged 45 homes. An investigation launched in 2016 discovered problems in the fire separation constructed between the properties. Repairs to the development began in November 2018.[16]
In May 2019, a Watchdog investigation was screened on BBC One regarding the fire safety of Bellway and Persimmon plc homes. In the programme a surveyor visited an estate developed by Bellway after concerns about fire safety had been raised by a resident. The investigation found safety breaches in every property that was looked at due to poorly fitted fire barriers.[17]
On 9 June 2019, a fire took place at the newly built Samuel Garside House located in De Pass Garden, which was constructed by Bellway. Peter Mason, chair of the Barking Reach residents’ association had contacted Bellway prior to the fire expressing concern about the potential fire risk of the development, but was told not to worry.[18] London mayor Sadiq Khan described the fire as "shocking" and stated that it could have "easily resulted in fatalities".[19]
In June 2021, protesters picketed the Bellway offices in Prestwich and Beckton to demand that the company repair numerous fire safety issues which had been discovered in their properties. The safety issues left residents "living in fear" and unable to sell or remortgage their homes.[20][21]
In 2021, a number fire safety issues were found in Bellway's Lamba Court complex in Salford. A number of cavity barriers were found to be inadequately secured, missing or stuffed with plastic bubble wrap.[22] It was reported that some residents faced bankruptcy from the "ruinous costs" for the repairs and one resident spoke to the press about how the stress has taken a significant toll on her mental health.[23]
In October 2022, Bellway reported it had made provisions for post-Grenfell cladding and safety improvements totalling £346.2m in its latest results. Its cumulative total for such improvements was £513.7m.[24]
Operations edit
The company achieved a 5 star rating in the 2015/16 Home Builders Federation new home customer satisfaction survey.[25]
References edit
- ^ "Bellway P L C overview". Companies House. 9 June 1978. Retrieved 27 January 2024.
- ^ a b c d "Results for the year ended 31 July 2023" (PDF). Bellway. Retrieved 12 February 2024.
- ^ "Bellway PLC (BWY.L)". Yahoo Finance. Retrieved 21 March 2013.
- ^ Wellings, Fred (7 September 2006). British Housebuilders. ISBN 9781405149181. Retrieved 23 March 2015.
- ^ "A reputation you can rely on" (PDF). Bellway. Retrieved 16 April 2017.
- ^ Company prospectus, January 1961
- ^ Telegraph, 21 March 2003
- ^ a b Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. ISBN 978-0-9552965-0-5.
- ^ Building, June 1981
- ^ . The Independent. 29 October 1997. Archived from the original on 7 November 2008. Retrieved 8 October 2008.
- ^ Curry, Rhiannon (20 March 2018). "Bellway nears 10,000-homes-a-year target for the first time". The Telegraph. ISSN 0307-1235. Retrieved 9 July 2018.
- ^ Gardiner, Joey (9 June 2020). "Bellway sales plummet since beginning of covid-19 lockdown". Building. Retrieved 9 June 2020.
- ^ Marshall, Jordan (23 July 2020). "Bellway starts redundancy talks with 175 staff". Building. Retrieved 23 July 2020.
- ^ Prior, Grant (8 August 2023). "Bellway to cut jobs and close divisions in restructure". Construction Enquirer. Retrieved 8 August 2023.
- ^ Morby, Aaron (26 February 2024). "Competition probe launched into 8 major house builders". Construction Enquirer. Retrieved 26 February 2024.
- ^ "Construction faults in homes in Canterbury's Old Tannery fixed to improve fire safety". Kent Online. 22 November 2018. Retrieved 5 June 2020.
- ^ "'New-build homes not fire safe', BBC investigation finds". BBC News. 1 May 2019. Retrieved 5 June 2020.
- ^ "Barking fire: Investigation launched after blaze destroys 20 flats in east London". Telegraph. 5 June 2020. Retrieved 5 June 2020.
- ^ "Barking flats fire: Residents had safety concerns before blaze". BBC News. 10 June 2019. Retrieved 5 June 2020.
- ^ "Barking Riverside protesters target developer as part of national building safety crisis campaign". Barking and Dagenham Post. 7 June 2021. Retrieved 10 January 2022.
- ^ "Don't buy in Britain, cladding victims tell foreign investors". The Times. 6 June 2021. Retrieved 10 January 2022.
- ^ "'Just cladding, yet again': Gove urged to extend fire safety guarantee". The Guardian. 10 January 2022. Retrieved 10 January 2022.
- ^ "Flat owners are 'prisoners' in 'death trap' homes four years after Grenfell". The Metro. 14 June 2021. Retrieved 10 January 2022.
- ^ Prior, Grant (18 October 2022). "Bellway sees post-Grenfell building safety bill hit £514m". Construction Enquirer. Retrieved 20 October 2022.
- ^ (PDF). Home Builders Federation. Archived from the original (PDF) on 16 June 2017. Retrieved 2 May 2017.
External links edit
- Official site