Bellway chief says first-time buyer scheme could lift output by 10%
Bellway's chief executive has said the new Your First Home scheme could increase the builder's annual house output by 10%, potentially driving completions back to 10,000 homes per year. The government initiative, announced recently by Andy Burnham, is designed to support first-time buyers with income and price caps, addressing England's chronic housing shortage by making new homes more affordable.
The scheme offers a 20% government-backed equity loan requiring just a 2.5% minimum deposit from buyers. Full details will be revealed by chancellor John Healey on 28 October. Bellway is targeting between 9,000 and 9,400 home completions this year, down from 9,695 last year due to lower demand and rising construction costs, though the builder achieved annual revenue of £3.16bn (up 13%) and underlying profits of £305.7m (up 5.7%).
- Bellway says new Your First Home scheme could boost its annual output by 10%
- Scheme offers 20% government equity loans with 2.5% minimum deposit for first-time buyers
- Full details to be announced on 28 October ahead of expected market recovery
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England faces a significant shortage of new homes. First-time buyers find it particularly hard to get on the property ladder because they struggle to save for the large deposits that mortgage lenders typically require.
The government has launched the Your First Home scheme to address this problem. Under it, first-time buyers can purchase new-build homes with just a 2.5% deposit, with the government providing a 20% equity loan covering a further 20% of the property price.
House builders like Bellway will provide the homes available under the scheme. As a major builder, their output of new homes affects England's overall housing supply.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The Your First Home scheme represents targeted intervention to unlock homeownership for those systematically excluded from the market. By reducing deposit requirements and providing government-backed equity loans with income and price caps, it directly stimulates construction whilst making homeownership accessible to first-time buyers who are otherwise locked out—as evidenced by Bellway's anticipated 10% output increase. The scheme addresses England's chronic housing shortage through practical, timely support that combines personal wealth-building with broader economic stimulus.
The case against
Whilst well-intentioned, equity loan schemes risk inflating house prices without addressing the fundamental supply constraint that drives unaffordability. The scheme transfers risk to taxpayers whilst benefits accrue primarily to builders and existing homeowners, and may encourage unsustainable borrowing among first-time buyers. Genuine affordability requires comprehensive planning reform and regulatory changes to expand housebuilding capacity; this scheme treats the symptom whilst the underlying supply crisis remains unresolved.
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Originally published by The Guardian as “Burnham’s Your First Home scheme ‘could boost Bellway’s house output by 10%’”.