Key facts
- Bellway has called for an immediate reduction in stamp duty.
- The housebuilder also requested a government-backed deposit support scheme for first-time buyers.
- Bellway stated that housing demand has been impacted by pre-Budget speculation and rising mortgage rates.
- The company expects housing completions to increase by 10.8% to 9,695 homes in the 12 months to July.
- Underlying operating profit is projected to rise to approximately £320m.
Housebuilder Bellway has urged the UK government to implement an immediate cut to stamp duty and introduce a first-time buyer scheme to revitalize the country's struggling housing market. The FTSE 250 firm cited reduced housing demand, attributed to speculation preceding last year's Budget and recent increases in mortgage rates influenced by the Iran war, as key concerns.
Bellway's chief executive, Jason Honeyman, stated that while the company is well-positioned for future growth, government intervention is necessary to stimulate demand. He called for tax reductions and a deposit support scheme to ease affordability issues, boost economic growth, and accelerate new home delivery.
Prime Minister Andy Burnham has previously dismissed speculation about abolishing stamp duty. Bellway joins other housebuilders, including Barratt and Redrow, in advocating for government measures to improve housing affordability and viability for construction businesses.
Bellway also indicated it is maintaining strict financial controls and prioritizing cash generation to navigate the current challenging period for the industry. The company anticipates a 10.8% increase in total housing completions to 9,695 homes for the twelve months ending July, with underlying operating profit expected to rise to approximately £320 million from £303.5 million.