Jason Honeyman, CEO of Bellway, one of Britain’s largest homebuilders, has called for an immediate reduction in stamp duty and the reinstatement of the Help to Buy scheme to revitalize the country's struggling housing market. Honeyman stated that more support is needed for first-time buyers facing difficulties in affording new homes, as the market outlook remains uncertain.
He urged Prime Minister Andy Burnham to take action to improve housing accessibility, noting that the industry is being impacted by escalating costs, higher mortgage rates, and elevated property prices, which are dampening demand. Honeyman believes that reducing stamp duty and introducing a government-backed deposit support scheme for first-time buyers would stimulate economic growth and accelerate the delivery of new homes.
These remarks come as speculation circulates about the potential nationalization of rival builder Vistry, a move that could send significant shockwaves through the sector.
A report from the Building Societies Association (BSA) highlighted the challenges facing the government, which has prioritized housing. The BSA warned that the gap between those within and outside the housing market is projected to widen considerably in the coming decades.
Bellway reported a significant slump in demand last autumn, attributing it to uncertainty surrounding the budget. Since then, rising oil and gas prices, exacerbated by the conflict with Iran, have fueled inflation fears, leading to increased mortgage rates and making home purchases more expensive. The cost of building materials, fuel, and transportation has also risen, increasing the overall cost of home construction. The industry has also contended with rising employment costs and regulatory burdens.
These combined pressures have jeopardized the Labour party's goal of building 1.5 million new homes during the current parliamentary term, raising questions about how Prime Minister Burnham and Housing Secretary Angela Rayner plan to address the situation. Bellway anticipates its annual profits for the 12 months ending July 31 will be approximately £320 million, at the lower end of its forecasts. The company's shares saw a modest increase of 1.8 percent but remain down 22 percent year-to-date.
Rival company Vistry has experienced more severe declines, with its shares falling another 12 percent after credit insurer Allianz Trade reduced its cover for the housebuilder's suppliers. While Vistry's stock recovered some losses, it is down 60 percent for 2026. Industry expert Emma Fildes noted that the sustained difficulties could lead Vistry to offer significant discounts on properties and land, fueling nationalization rumors.
The government has stated it has no plans to nationalize housebuilders. However, some on the left of the political spectrum might view Vistry’s nationalization as a potential avenue for the Prime Minister to achieve his aim of a large-scale council house building program. The government has also indicated there are no current plans to reintroduce Help to Buy, a scheme that ran from 2013 to 2023, offering loans to first-time buyers and boosting the profits of UK homebuilders.