Housebuilder Bellway calls for ‘immediate’ cut to stamp duty

Housebuilder Bellway has urged the government to drastically reduce stamp duty and introduce a first-time buyer program to rejuvenate the UK's struggling housing sector. The FTSE 250 company stated on Tuesday that housing demand has been significantly impacted by last year's pre-Budget speculation and the recent surge in mortgage rates caused by the Iran war.

Bellway's CEO, Jason Honeyman, stated that the firm is "well-positioned to take advantage of future growth opportunities" and is urging the government to stimulate demand by lowering taxes. Honeyman emphasized the need for an immediate reduction in stamp duty and a government-backed deposit support scheme for first-time buyers to alleviate affordability issues and spur more demand.

Prime Minister Andy Burnham has previously dismissed speculation about scrapping stamp duty and council tax in favor of a land-value tax system, insisting that "it won't be happening." Nonetheless, Bellway's demand for a stamp duty cut makes it the latest housebuilder, alongside Barratt Redrow, to plead with the government to intervene and boost housing demand.

Property portal Rightmove claims that policies aimed at improving affordability for first-time buyers would boost demand and make building more feasible for these firms. Bellway stated on Tuesday that it remains vigilant in managing its finances and prioritizing cash generation to navigate the challenging period for housebuilders.

The company anticipates an 10.8% increase in housing completions for the 12 months ending July 2025, reaching 9,695 homes, up from 8,749 in 2023. Bellway also projects underlying operating profit to be around £320m, up from £303.5m. Bellway's shares declined by 1% to 2,072p on Tuesday, marking a 24% drop for the year.