Bellway (BWY.L) is pressing the government to introduce an immediate stamp duty reduction to help revive a subdued UK property market.
The FTSE 250 housebuilder warned that short-term demand remains “uncertain” due to persistent building cost inflation and widespread consumer caution across the sector.
Based in Newcastle, Bellway is among several firms facing muted interest in new properties amid elevated mortgage rates and squeezed household budgets.
Prime Minister Andy Burnham last month dismissed prospects of a significant overhaul of stamp duty ahead of the Autumn Budget, cooling industry hopes for swift relief.
However, Bellway chief executive Jason Honeyman has stressed that rapid policy action is essential to stimulate activity and support aspiring homeowners across the country.
“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,” Honeyman 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,” he added.
Bellway reported that housing completions grew by 10.8 per cent to 9,695 homes over the year to 31 July, compared with the prior year, signalling operational progress despite market headwinds.
The company also revealed that underlying operating profits are set to have increased to around £320 million, up from £303.5 million the previous year.
Bellway noted positive trading in the early part of the spring selling season but acknowledged a “moderation” in customer demand since April, attributed to the uptick in mortgage rates.
Honeyman said: “Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry.”
He added: “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.”
In a speech in Manchester last month, Burnham declared that “the country is in a housing trap” and called for a significant council house building programme to address chronic supply shortages.
He pledged that a Burnham government would deliver the “biggest council house building programme since the post-war period,” leveraging vacant public land to keep costs down.
The new prime minister has indicated a preference for higher-density development within existing towns, aiming to reinvigorate high streets while shielding green spaces from development pressure.
