UK housebuilder urges Andy Burnham to slash stamp duty to boost housing market
Housebuilder Bellway has called on the Government to immediately cut stamp duty and introduce a deposit support scheme for first-time buyers, in a bid to revive the UK's sluggish property market. The Newcastle-based firm's appeal comes despite prime minister Andy Burnham having ruled out a major stamp duty overhaul at the Autumn Budget, and reflects wider industry pressure as high mortgage rates, squeezed household budgets and rising building costs continue to dampen demand for new homes.
Bellway reported that home completions rose 10.8 per cent to 9,695 over the year to 31 July, with underlying operating profit expected to climb to around £320 million from £303.5 million. The company said trading was strong early in the spring selling season but has since cooled due to rising mortgage rates. Burnham has separately pledged the "biggest council house building programme since the post-war period" and higher-density development in existing towns, using vacant public land to cut costs and protect green spaces.
In short
- Bellway urges Government to cut stamp duty to boost housing demand
- Annual completions up 10.8% to 9,695 homes; profits rising
- Burnham has ruled out major stamp duty changes at Budget
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Reducing stamp duty would immediately remove a transaction barrier that suppresses property market activity and household purchasing power, whilst deposit support schemes for first-time buyers directly address affordability pressures for younger purchasers. Stimulating demand through such measures would encourage housebuilders to increase construction, ultimately expanding the housing supply the market requires to restore healthy transaction volumes and stabilise prices.
The case against
Stamp duty cuts primarily benefit property sellers and developers rather than genuinely solving affordability for ordinary families, and deposit support schemes risk inflating house prices without addressing the fundamental shortage of housing stock. The Government's approach of expanding council house building and higher-density development creates permanent publicly-owned assets and ensures new homes are available at genuinely affordable levels, making more efficient use of public resources to tackle supply constraints rather than chasing demand through tax reductions.
Explained simply
Stamp duty is a tax paid when someone buys a property above a set price, and the amount depends on the home’s value and the buyer’s circumstances. First-time buyers can receive some relief, but they still need to save a deposit and qualify for a mortgage.
Bellway is one of the UK’s large housebuilders, selling newly built homes to buyers. Its call reflects concerns across the housing industry that borrowing costs and pressure on household budgets are making it harder for people to buy.
Housing policy also involves balancing the cost and supply of homes with where new building takes place. The Government can influence this through taxes, help for buyers and housebuilding plans.