Bellway reports 10.8% volume growth but warns of near-term demand uncertainty
Residential developer Bellway has called on the UK government to introduce an immediate reduction in stamp duty as part of measures to stimulate the housing market.
The Newcastle-based FTSE 250 housebuilder made the appeal alongside its full-year results for the period to 31 July, in which it reported a 10.8% rise in housing completions to 9,695 homes. Underlying operating profit is expected to have grown to approximately £320 million, up from £303.5 million the previous year.
Bellway said trading was positive in the early spring selling season but that customer demand has "moderated" since April, with higher mortgage rates cited as a contributing factor. The company described the near-term outlook as "uncertain", pointing to persistent build-cost inflation and ongoing consumer caution.
"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," said Jason Honeyman (pictured right), chief executive of Bellway.
"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."
Analysis of the latest HMRC statistics found that homebuyers paid £6.6 billion in Stamp Duty Land Tax in the first half of the year. The figure matched the same period last year, despite more purchases becoming liable for the tax following the reduction of nil-rate thresholds on 1 April 2025.
Those thresholds fell from £250,000 back to £125,000, adding £2,500 overnight to the stamp duty bill on an average-priced home in England. A home mover purchasing an average-priced English property now faces a stamp duty bill of £4,572. In June alone, buyers paid £1.2 billion.
Bellway's call to reduce stamp duty comes after Prime Minister Andy Burnham last month indicated that a major stamp duty overhaul was not planned for the Autumn Budget. In a speech in Manchester, Burnham described the country as being in "a housing trap" and pledged to prioritise council house building on surplus public land, with a focus on higher-density development in existing urban centres to protect green spaces.
Honeyman acknowledged the challenges facing the sector while pointing to operational progress. "Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry," he said. "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."
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