The boss of one of the UK’s biggest house builders has urged the government to cut stamp duty immediately to “stimulate demand” in the housing market.
Sector figures have called for action on stamp duty to stimulate the housing market (picture: Alamy)
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Major house builder calls for ‘immediate’ cut in stamp duty #UKHousingThe boss of one of the UK’s biggest house builders has urged the government to cut stamp duty immediately to “stimulate demand” in the housing market #UKhousingJason Honeyman, chief executive of Bellway, today joined a growing chorus of voices calling for action on the tax as the housing market remains subdued amid wider economic uncertainty.
Mr Honeyman also called for a replacement scheme for Help to Buy.
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.”
Many large housing associations would expect to benefit from a reduction in stamp duty as it would likely lead to an uptick in shared ownership and open market sales.
In April last year, temporary thresholds on stamp duty were lowered. The changes mean first-time buyers currently pay 5% stamp duty on a property valued between £300,001 and £500,000. Prior to that, first-time buyers avoided paying stamp duty on properties valued up to £425,000.
In June, MPs on parliament’s Housing, Communities and Local Government (HCLG) Committee called for reforms to stamp duty to help first-time buyers.
The Conservative Party has vowed to abolish stamp duty, if elected. Reform has said it would scrap the tax for properties below £750,000.
Andy Burnham has previously backed the idea of abolishing stamp duty and replacing it with a land value tax. However, last month he denied there are any current plans to make changes.
Mr Honeyman also called on the government to support the “delivery of affordable and social housing for those who need it most”.
The sector is currently waiting for news on grant bids under the government’s Social and Affordable Homes Programme (SAHP). Last month, a coalition of sector bodies urged Mr Burnham to sign-off the bids, warning that delays are putting delivery at risk.
Mr Honeyman’s comments came as Bellway reported that it expects its underlying full-year profit to the end of July 2026 to be around £320m, up from £303.5m the previous year.
However, this figure does not include building safety costs and other one-off items. Bellway reported a 10.8% rise in completions to 9,695 homes.
“Bellway has delivered robust performance and growth in volume output, despite ongoing headwinds for our industry,” said Mr Honeyman.
The FTSE-250 firm is due to report its full-year results on 13 October.
