Bellway chief executive Jason Honeyman has called for an immediate cut in stamp duty and the return of Help to Buy to revive Britain's flagging housing market. He said more needed to be done for first-time buyers struggling to afford new homes as the near-term outlook remained "uncertain".
Honeyman urged Prime Minister Andy Burnham "to act now to improve access to housing" as the industry is battered by rising costs, higher mortgage rates, and elevated prices hitting demand. Honeyman said: "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 comments came amid speculation that crisis-torn rival Vistry could even be nationalised, which would send shockwaves through the housebuilding sector and business at large.
A report from the Building Societies Association underlined the scale of the challenge facing Burnham, who has insisted housing is a top priority. The association warned that "the gap between those inside and outside the housing market will widen significantly over the coming decades".
Rising Costs and Market Headwinds
Bellway said yesterday that it once again suffered a slump in demand last autumn because of "uncertainty" ahead of the Budget. Since then, rising oil and gas prices following the outbreak of the war with Iran have fuelled inflation fears, pushing up mortgage rates and making home purchases more expensive for buyers.
The cost of building homes is also rising as the price of everything, from bricks and other materials to fuel and transport, increases. The industry has also been hammered by rising employment costs stemming from Labour's national insurance tax raid and red tape that has hit investment and development.
These headwinds have shattered Labour's plan for 1.5m new homes to be built in this Parliament. The situation has raised questions over how Burnham and returning housing secretary Angela Rayner plan to turn the situation around.
Housebuilder Performance and Nationalisation Speculation
Bellway said it expects to have made annual profits of £320million for the 12 months to the end of last month, placing it at the lower end of its forecast range. Shares in the builder edged up 1.8 per cent, but remain down 22 per cent this year.
Rival Vistry has fared even worse, with its shares tumbling another 12 per cent on Monday after major credit insurer Allianz Trade cut its cover for suppliers to the housebuilder. The stock clawed back some losses yesterday, rising 3.3 per cent, but is down 60 per cent so far in 2026.
Industry expert Emma Fildes, who runs the property buying agency Brick Weaver, said: "The consistent hammering will leave the company further exposed to discounts on both sales of properties and land that will add fuel to the rumours of nationalisation."
The Government has no plans to nationalise housebuilders, but taking Vistry into public ownership may appear attractive to some on the Left as the Prime Minister seeks to deliver a huge council house building programme. The Government also insisted yesterday there are "no plans" for the reintroduction of Help to Buy, which ran between 2013 and 2023 and offered loans to first-time buyers, boosting the profits and share prices of Britain's builders.
