Bellway warns Help to Buy revival could slow housing market

Summarised from 2 outlets · 3 reports · Updated 13 Oct, 10:20 · Archive

Bellway cautions that the government's new Your First Home equity loan scheme may initially discourage purchases.

Bellway has warned that the government's revival of the Help to Buy scheme, rebranded as Your First Home, could slow the housing market in the near term by encouraging buyers to delay decisions. Chief executive Jason Honeyman told shareholders on Tuesday that while the scheme 'has the potential to provide meaningful support for first-time buyer demand', the period ahead of its launch may influence the timing of purchasing decisions among prospective customers.

The FTSE 250 housebuilder called the scheme a 'welcome development' but cautioned it will not immediately solve the UK's housing slowdown. Honeyman said customer demand remains constrained by affordability pressures, with mortgage interest rates above prior-year levels, while wider economic uncertainty continues to affect homebuyer decision-making. He noted that housebuilders are still waiting for 'further detail on the scope, design and timing' of Your First Home.

The scheme will offer first-time buyers a 20 per cent equity loan towards a deposit of 2.5 per cent, with an initial interest-free period. According to reports, the programme aims to help young people who cannot rely on family financial support get on the housing ladder. Housebuilders and property experts had long been demanding a return to Help to Buy, which was set up in 2013 but ended in 2022.

How it is being reported

• Burnham's first-time buyer scheme risks slowing the property market further, warns major housebuilderBellway's chief executive, Jason Honeyman, also cautioned that until Your First Home is launched, buyers could delay purchasing decisions, slowing down the property market further.This is Money · 13 Oct, 10:09
• Burnham's first-time buyer scheme risks slowing the property market further, warns major housebuilderBellway's chief executive, Jason Honeyman, also cautioned that until Your First Home is launched, buyers could delay purchasing decisions, slowing down the property market further.Daily Mail · 13 Oct, 10:09
• Bellway warns revived Help to Buy scheme could slow housing marketBellway has warned the government’s revival of the Help to Buy scheme could further slow the housing market in the near term by encouraging housebuyers to delay decisions. The FTSE 250 housebuilder said Labour’s new equity loan scheme, Your First Home, is a “welcome development” but cautioned it will not immediately solve the UK’s housing [...]City AM · 13 Oct, 07:54

In this story: Bellway · Jason Honeyman · Andy Burnham · UK

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