𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Residential developer Bellway has urged the Government to introduce an immediate cut to stamp duty to help kickstart a recovery across the UK property market.

The appeal comes as the FTSE 250 business warned that short-term demand remains “uncertain” due to persistent building cost inflation and widespread consumer caution.

Based in Newcastle, the housebuilder is among several firms facing subdued interest for new properties amid high mortgage rates and squeezed household budgets.

Prime minister Andy Burnham last month dismissed prospects of a significant overhaul of stamp duty in the Autumn Budget.

However, Bellway chief executive Jason Honeyman stressed that swift policy changes are necessary to stimulate activity and assist aspiring home buyers.

“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,” he 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.”

On Tuesday, the company reported that housing competition grew by 10.8 per cent to 9,695 homes over the year to 31 July, compared with a year earlier.

It also revealed that underlying operating profits are set to have increased to around £320 million from £303.5 million last year.

Bellway said it saw positive trading in the early part of the spring selling season, but has seen a “moderation” in customer demand since April due to the uptick in mortgage rates.

Mr Honeyman added: “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.”

In an address in Manchester last month, Mr Burnham said that “the country is in a housing trap” and called for a huge “council house building programme” to be brought in.

He vowed that a Burnham government would oversee the “biggest council house building programme since the post-war period”, using vacant public land to reduce costs.

The new prime minister has indicated that he will focus on higher-density development in existing towns, to both reinvigorate high streets and protect green spaces from development.