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Bellway CEO Jason Honeyman has called on the UK government to eliminate stamp duty for first-time buyers and implement a long-term deposit assistance scheme to help young adults enter the housing market. With affordability pressures and low consumer confidence dampening demand, homebuilders are struggling despite incentives like deposit top-ups and discounts. Honeyman highlighted that many young buyers lack family financial support, emphasizing the need for government intervention. The move aligns with the Labour government's focus on housing, aiming to boost market activity and support economic growth.
UK homebuilders, led by Bellway, have urged the government to remove stamp duty for first-time buyers and introduce a lasting deposit assistance program to ease market entry for young adults. The housing sector is currently facing a slowdown due to affordability issues and low consumer confidence, despite developers offering incentives such as deposit top-ups and price discounts. Advertisement
Jason Honeyman, Bellway's CEO, noted that not every young person has access to family financial support, making it harder for them to afford homes. He explained that many first-time buyers struggle without government-backed assistance.
Temporary stamp duty relief ended in April, meaning first-time buyers now pay tax on homes priced above GBP 300,000 (approximately USD 397,890). Honeyman, alongside other major builders, has requested the Labour government which prioritizes housing in its economic growth plans' to reverse these stamp duty costs and establish a deposit scheme to make homeownership more accessible. He added that even relatively small support at the lower end of the market could significantly improve market activity.
Recently, Conservative Party leader Kemi Badenoch also promised to scrap stamp duty on primary home purchases, signaling cross-party attention to housing affordability. Meanwhile, the government is revising its planning system to reach its target of constructing 1.5 million homes by 2029, although projections suggest a shortfall of 200,000 homes.
Source Reuters
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