Bellway calls for urgent stamp duty cut to revive UK property market
Residential developer Bellway has urged the Government to introduce an immediate cut to stamp duty to help kickstart a recovery across the UK property market, reports BritPanorama.
The appeal follows a warning from the FTSE 250 business that short-term demand remains “uncertain” due to persistent building cost inflation and widespread consumer caution. Based in Newcastle, Bellway is one of several firms grappling with subdued interest in new properties amid high mortgage rates and tightened household budgets.
Prime Minister Andy Burnham dismissed the likelihood of a significant overhaul of stamp duty in the upcoming Autumn Budget. However, Bellway’s chief executive Jason Honeyman emphasized that swift policy changes are crucial to stimulate market activity and assist aspiring home buyers.
“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,” he stated.
Honeyman advocated for an immediate reduction in stamp duty alongside a Government-backed deposit support scheme for first-time buyers, arguing that these measures would drive economic growth and accelerate the delivery of essential new homes across the country.
On Tuesday, Bellway reported that housing competition grew by 10.8 percent to 9,695 homes over the year ending 31 July compared to the previous year. The company also revealed that underlying operating profits are expected to have risen to approximately £320 million from £303.5 million last year.
Despite positive trading at the beginning of the spring selling season, Bellway has seen a “moderation” in customer demand since April, attributed to rising mortgage rates. Honeyman remarked, “Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry.”
In an address last month in Manchester, Burnham highlighted that “the country is in a housing trap” and advocated for a significant “council house building programme.” He pledged that a Burnham government would facilitate the “biggest council house building programme since the post-war period.”
The new Prime Minister has indicated a focus on higher-density development in existing towns, aiming to reinvigorate high streets while protecting green spaces from excessive development.
