Burnham’s Your First Home scheme ‘could boost Bellway’s house output by 10%’
Help-to-buy initiative for England could slow market while first-time buyers wait for launch, builder admits Business live – latest updates The new Your First Home programme for first-time buyers could increase the number of houses British builder Bellway produces each year by 10%, its boss has said. Faced with a chronic shortage of homes, the government has made housing one of its top priorities…
Bellway, a FTSE 250 housebuilder, has cautioned that the government's revival of the Help to Buy scheme could slow the housing market in the short term by causing prospective buyers to delay their decisions. The Labour party's Your First Home scheme, which provides first-time buyers with a 20% equity loan, is seen as a positive move, but Bellway's CEO, Jason Honeyman, warns that it may not immediately solve the UK's housing market downturn.
The scheme will offer a deposit of 2.5% with an interest-free period, but Honeyman emphasizes that the timing of its launch may influence purchasing decisions. Homebuyers are currently constrained by affordability pressures due to soaring mortgage rates, which have been exacerbated by the Iran war. Despite the positive outlook, Bellway's CEO notes that the sector has been grappling with subdued trading conditions throughout the year and is still awaiting more details about the scheme.
The company reported a robust performance in the year to July, with housing completions up 11% and revenue rising 14% to £3.2bn.
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