Bellway expects 10% rise in annual builds from new first-home scheme

The government’s Your First Home scheme, unveiled by Andy Burnham, will provide first-time buyers in England with a 20% equity loan and a minimum 2.5% deposit for new-build flats or houses, subject to income and price caps. Bellway chief executive Jason Honeyman said the programme could increase the builder’s annual completions by around 10%, potentially restoring output to at least 10,000 homes from next September. He noted that while the scheme offers significant support, it may also cause some purchasers to delay buying until it is operational.

Bellway currently targets 9,000-9,400 homes this year, down from 9,695 last year, amid a weaker order book and higher construction costs. The firm posted revenue of £3.16 bn and pre-tax profit of £305.7 m for the year to 31 August, beating forecasts. The scheme is expected to benefit other large housebuilders such as Persimmon, MJ Gleeson and Taylor Wimpey, but is less likely to aid up-market players like Berkeley Group and Vistry Group.