Bellway’s chief executive has called for an immediate reduction in stamp duty alongside a government-backed deposit support scheme for first-time buyers to help stimulate demand.
Jason Honeyman said both would ease “affordability constraints” and “accelerate the delivery of much-needed new homes across the country.” Stamp duty applies in England.
His comments came in a trading statement in which it said there has been a moderation in customer demand since April in response to the rise in mortgage rates.
Full-year underlying operating profit is expected at the lower end of its £320m–£330m range amid elevated uncertainty from cost inflation and cooling demand.
External pressures, including rising mortgage and energy prices, geopolitical tensions and UK political unpredictability, are clouding the outlook beyond the current financial year.
Mr Honeyman, said: “Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry. Our sharp focus on operational improvement and drive for capital efficiency has provided resilience and supported a strong increase in cash generation and shareholder returns.
“The board remains confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities.
“However, with the near-term outlook remaining uncertain, we call on the Government to act now to improve access to housing across all tenures, both by helping first-time buyers onto the property ladder and supporting the delivery of affordable and social housing for those who need it most.
“In order to ease affordability constraints and stimulate demand, an immediate reduction in Stamp Duty alongside a Government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country.”
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