Bellway Reports Profit Surge Amid Calls for Stamp Duty Reform
Housing completions rise by 10.8% as company warns of 'uncertain' demand and urges government intervention.
Image: Eddie Pollard / AI
Callum Smith
Bellway announced a significant increase in housing completions and operating profits for the year ending July 31.
Completions surged by 10.8% to 9,695 homes over the year. Underlying operating profits climbed to approximately £320 million, up from £303.5 million last year.
Despite these gains, Bellway observed a distinct moderation in customer demand since April, following an uptick in mortgage rates.
Demand is understood to be 'uncertain' in the short term, facing persistent pressure from rising building costs and widespread consumer caution.
Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry.
Jason Honeyman confirmed, "Bellway has delivered a robust performance and growth in volume output, despite ongoing headwinds for our industry."
Honeyman affirmed, "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."
Bellway now calls on Prime Minister Andy Burnham to "act now" and scrap a controversial property tax ahead of Chancellor John Healey's Budget this year.
The current stamp duty framework requires buyers in England and Northern Ireland to pay tax on properties exceeding £125,000.
This move is claimed to be essential to kickstart a recovery in the UK housing market. Government intervention is needed to revitalise the market and open doors for aspiring homeowners, Jason Honeyman claimed.
Honeyman stated, "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."
Measures such as stamp duty relief and a state-backed deposit support scheme would reportedly "drive economic growth and accelerate the delivery of much-needed new homes across the country" while easing the affordability squeeze currently holding back purchasers.
Jason Honeyman elaborated, "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."