Bellway in stamp duty call to boost new-build market

Housebuilder Bellway has called for an immediate stamp duty cut to boost a stuttering new home market.

The company says the Government must act to shield firms from “uncertain” demand fuelled by elevated mortgage costs and consumer finance pressures.

The Newcastle-headquartered firm made the call after sales grew by 10.8 per cent to 9695 homes in the year to July 31.

Prime Minister Andy Burnham last month ruled out a major overhaul of stamp duty at the Autumn Budget.

However, Jason Honeyman, chief executive at Bellway – which has developments across England, Scotland and Wales – said action is needed to reinvigorate the housing market and help support potential new homeowners.

He added: “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 by 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.”

The cry came in a trading update that also revealed underlying operating profits at the business are set to have increased to around £320 million from £303.5 million last year.

Bellway said it saw positive trading in the early part of the spring selling season, but has seen a “moderation” in customer demand since April due to the uptick in mortgage rates.

Jason added: “We have 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.”

Bellway’s developments include Meadowcroft, in Longframlington, Northumberland, and The Old Foundry, in Wolsingham, County Durham.

Its national portfolio also features Dalmore Grange, in Midlothian; Bishops Gate, in Beverley, East Yorkshire; Lucas Green, in Solihull; Tattenhoe Meadows, in Milton Keynes; and Parc Mawr, in Swansea.

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