It’s been a complex few weeks for FTSE100 AND FTSE250shares in housing construction. Belfry For example, (LSE:BWY) has lost 32% in value over the past month, reflecting concerns about future interest rates.

In fact, they fell a further 10% on Tuesday (March 24) after the first half-year trading data was released. At £19.21 per share, the price-to-earnings (P/E) ratio has fallen to 11.5 this financial year (to July 2026). In fiscal year 2027, this ratio drops to 9.5.

The question is, at today’s share prices, is Bellway irresistible?

What happened today?

The FTSE 250 index is falling sharply after full-year forecasts were lowered. Chief executive Jason Honeyman commented: “The ongoing conflict in the Middle East increases the risk of both inflationary cost pressures and the impact on customer demand, and we have already seen volatility return to the mortgage market“

Underlying operating profit for this financial year is now between £320m and £330m, below the broker’s estimate of £334m. The company also lowered its operating profit margin target to 10.5%, down about half a percentage point.

Bellway did really well in the first half. Revenues of £1.5 billion rose 6.3% year-on-year and slightly beat broker estimates as commissioning and sales prices rose.

Underlying operating profit increased by 1.5% to £159m, although this was not that impressive. The underlying operating profit margin decreased to 10.5% from 11%, which resulted in the financial result not being in line with forecasts.

Still, Bellway’s first-half performance was largely solid. This also encouraged the company to raise its full-year investment completion target to 9,300-9,500 from the current 9,200.

The appearance of weakness

As markets look to the future, it’s no surprise that investors have focused on Bellway’s lowered earnings expectations for the future. And especially since Bellway is already showing signs of trouble.

As of March 16, the developer’s order backlog included 5,311 homes, down 4.9% year-on-year. The value of the order book fell by 1.9% to £1.5 billion.

As of February 1, weekly private booking rates per outlet also dropped to 0.7 from 0.76 for the same period in 2025.

bellway said:the situation in the Middle East did not have a significant impact on trade” right now. But investors are asking how bad can things get if interest rates and mortgage products become less favorable to buyers?

Is Bellway stock a potential buy?

As I said, the decline in Bellway’s share price is causing its P/E ratios to be at their lowest levels. But that’s not all – the construction company’s price-to-earnings growth ratio (PEG) will remain below 1 for both fiscal years. In fact, the values ​​of 0.3 and 0.4 are well below the inner value region.

Today’s price weakness has also pushed the dividend yield this year to a whopping 3.6%. This will raise to 4.2% in FY2027.

So are the FTSE 250 shares the best value shares? I think this is worth seriously considering because the long-term prospects for the housing industry remain robust, driven by government policy and the UK’s growing population. But in the meantime, investors must be prepared for severe volatility.