Bellway has called for an immediate reduction in stamp duty and a government-backed deposit scheme for first-time buyers after warning of softer customer demand.
The appeal came in the housebuilder’s trading update yesterday for the year ended 31 July 2026, ahead of its full-year results on 13 October.
Bellway expects to report a 10.8% increase in housing completions to 9,695 homes, ahead of its previous guidance of between 9,300 and 9,500.
Housing revenue is expected to have risen by more than 13% to £3.14bn, while underlying operating profit is anticipated to reach approximately £320m, compared with £303.5m last year.
BARRIER TO DEMAND
Bellway says uncertainty before the autumn Budget affected customer demand before trading improved during the early spring selling season.
Demand moderated again from April as mortgage rates increased, while the average use of buyer incentives rose from 4.1% to approximately 5%.
The private reservation rate excluding bulk sales fell from 0.52 to 0.49 per outlet per week.
Bellway’s average selling price is expected to have increased from £316,412 to approximately £324,000 because of geographical and product-mix changes, with the company reporting no underlying house price inflation.
ORDER BOOK FALLS
The housebuilder’s forward order book stood at 4,206 homes at the end of July, down from 5,307 a year earlier. Its value fell from £1.52bn to £1.2bn.
Bellway expects to report year-end net cash of £157.7m, up from £41.8m. It also plans to begin a further £50m share buyback after completing its existing £150m programme.
“Immediate reduction in stamp duty.”
Jason Honeyman (main picture, inset), CEO of Bellway, said: “Bellway has 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.
“The Board remains confident that, with supportive market conditions, Bellway is in a strong position to capitalise on future growth opportunities.”
FIRST-TIME BUYER HELP
He added: “However, 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.
“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.”
