PM told to ‘act now’ and slash stamp duty to save the housing market from crippling mortgage rates

HOUSEBUILDING giant Bellway has demanded the Government slash stamp duty to rescue Britain’s struggling property market. The FTSE 250 firm warned that demand for new homes remains “uncertain” as buyers continue to be battered by sky-high mortgage rates and squeezed household budgets. Newcastle-based Bellway is one of several major housebuilders to have seen sales dented by punishing borrowing costs this year. Prime Minister Andy Burnham last month ruled out a major shake-up of stamp duty in the Autumn Budget. Sign up for the Money newsletter Thank you! But Bellway boss Jason Honeyman has now urged him to think again, insisting swift action is desperately needed to get the housing market moving. “With the near-term outlook remaining uncertain, we call on the Government to act now to improve access to housing across all tenures,” he said. He added the move must help “first-time buyers onto the property ladder” and support “affordable and social housing for those who need it most”. Mr Honeyman said an immediate cut to stamp duty, combined with a Government-backed deposit scheme, would ease the pressure on struggling buyers. He said such a move would “both drive economic growth and accelerate the delivery of much-needed new homes across the country”. It comes as Bellway revealed housing completions jumped 10.8% to 9,695 homes in the year to July 31, up from the previous year. Most read in Money The firm also expects underlying operating profits to have climbed to around £320million, up from £303.5million last year. Bosses said trading got off to a strong start during the spring selling season this year. But they admitted demand had since “moderated” from April onwards as mortgage rates crept back up. Despite the tough conditions, Mr Honeyman insisted the firm had delivered a “robust performance” with growth in the number of homes built. He said: “Our sharp focus on operational improvement and drive for capital efficiency has provided resilience.” The boss added this had helped support “a strong increase in cash generation and shareholder returns”. Comment now