Bellway calls for Government to ‘commit’ to addressing home affordability issues

Bellway has revealed it sold more homes in the past year but said concerns about affordable houses and possible tax changes in the autumn Budget were affecting buyer demand over recent months.

The Newcastle-based housebuilder also called on the Government to show its “commitment” to building more homes through supportive housing policy.

The remarks came alongside the group’s full-year financial results, which showed it completed the sale of 8,749 homes in the year to the end of July.

This was 14.3% more than the previous year, while the average selling price of a home rose from nearly £308,000 to about £316,400.

The group reported a pre-tax profit of £221.9 million, more than a fifth higher than the previous year.

Bellway nonetheless flagged that since the start of the new financial year in August there had been a “continuation of weak consumer sentiment which has carried from late spring”.

This followed a deadline for more generous stamp duty relief from the beginning of April, after which some home buyers in England and Northern Ireland have been paying more tax.

“Customer demand has been affected by ongoing affordability constraints and uncertainties about potential taxation changes in the Government’s Budget in November 2025,” Bellway added.

Reports have said that Rachel Reeves may be considering an overhaul of property tax, including replacing stamp duty with a national proportional levy on the sale of homes worth more than £500,000.

Bellway chief executive Jason Honeyman said the developer was facing “some near-term challenges” but that it was “very well-positioned to continue delivering much needed high-quality new homes in the years ahead”.

“However, supportive Government policy is essential for the industry to drive a meaningful and sustained increase in housing output,” he added.

“The Government must demonstrate its commitment to accelerating housebuilding by driving through planning reform and addressing the affordability constraints facing first-time buyers across the country.”

Julie Palmer, partner at consultancy firm Begbies Traynor, said Bellway’s results show that “demand from its customer base is holding up, even as affordability pressures and planning delays continue to weigh on activity”.

“The market is still waiting for clearer signals on interest rates and housing policy, but easing inflation and continued talk of planning reform and attempts to iron out kinks and blockages in the buying process ahead of the autumn Budget could offer some welcome relief,” she added.