Housebuilder Bellway calls for ‘immediate’ cut to stamp duty
Housebuilder Bellway has called on the government to slash stamp duty immediately and roll out a first-time buyer scheme to revive Britain’s flagging housing industry.
The FTSE 250 firm said on Tuesday that housing demand has been hammered by last year’s pre-Budget speculation and the recent rising mortgage rates triggered by the Iran war.
Jason Honeyman, the group’s chief executive, said Bellway is “in a strong position to capitalise on future growth opportunities” but asked the government to stimulate demand by cutting taxes.
“We call on the government to act now to improve access to housing across all tenures,” he said. “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.”
Prime Minister Andy Burnham has previously denied speculation that he is considering axing stamp duty.
Following reports that he was planning to scrap the levy and council tax in favour of a land-value tax system, Burnham said this “won’t be happening”.
“I don’t know actually where some of the stories that have appeared over the last 24 hours have come from,” the Prime Minister said last month.
But Bellway’s call for a cut to stamp duty makes it the newest member of a group of housebuilders, including Barratt Redrow, which are urging the government to step in and boost housing demand.
Property portal Rightmove claims that a set of policies to increase affordability for first-time buyers would lift demand and make building more viable for these businesses.
Bellway said on Tuesday that it is “continuing to exercise tight control” over its finances and prioritise cash generation in a bid to weather this difficult period for housebuilders.
“Our industry continues to face challenging headwinds, increasing the risk of a more prolonged period of softer customer demand alongside renewed inflationary pressure on build costs,” the group told investors.
The firm’s total housing completions through the 12 months to the end of July are expected to come in 10.8 per cent higher at 9,695 homes, up from 8,749 in 2025.
Underlying operating profit is expected to be around £320m, up from £303.5m, the company said.
Shares in Bellway fell by one per cent to 2,072p on Tuesday, leaving the stock down 24 per cent in the year to date.