Bellway CEO calls for ‘immediate’ stamp duty cut and FTB deposit scheme
Jason Honeyway, CEO of housebuilder Bellway, has urged the government to introduce an “immediate reduction” to stamp duty and a deposit scheme for first-time buyers to stimulate the market.
The request made in the firm’s trading update comes after Prime Minister Andy Burnham ruled out any stamp duty reform in this year’s Autumn Budget, saying the government would focus on making taxation fairer instead.
In Bellway’s results update, Honeyway 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.”
Still, Bellway revealed a 10.8% year-on-year growth in housing completions to 9,695, above its guidance of 9,300 to 9,500 homes.
The average selling price of its private completions also rose from £316,412 last year to £324,000 this year and housing revenue increased 13% to £3.14bn, resulting in a profit expectation of around £320m, an increase on the previous year’s £303.5m.
However, while Bellway said there was an improvement in trading in the early spring, it said the rise in mortgage rates had moderated demand.
The firm said while it was in a strong position to capitalise on opportunities, the industry faced “challenging headwinds” which increased the risk of a “prolonged period of softer customer demand” and “renewed inflationary pressure on build costs”.
Consequently, Honeyway said: “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.”
