Business · Companies · 5 hrs ago
Bellway says first-time buyer scheme could lift annual homebuilding by 10%
The proposed Your First Home scheme could help Bellway build 10% more homes each year, the company’s chief executive, Jason Honeyman, said.
The scheme is for first-time buyers purchasing new-build homes in England.
It is expected to offer a government-backed loan worth 20% of the purchase price, with buyers putting down a minimum deposit of 2.5%.
Income and property-price caps are intended to focus the support on buyers with more modest incomes and homes.
Bellway is aiming to complete 9,000 to 9,400 homes this year, below last year’s 9,695, amid weaker demand and higher construction costs.
Honeyman said the scheme could eventually help Bellway return to at least 10,000 homes a year, though some buyers may delay purchases until it begins.
The government is expected to announce the full details, including a launch date, on 28 October.
Bellway chief executive Jason Honeyman said the Your First Home scheme could increase the builder’s annual home completions by about 10%.
He said the programme could help Bellway return to building at least 10,000 homes a year if the market recovers.
The scheme is for first-time buyers in England purchasing a new-build home and includes a government-backed equity loan.
Bellway is targeting 9,000 to 9,400 completions in the current year, down from 9,695 last year.
The government is expected to announce full details, including the launch date, in the budget on 28 October.
- Who
- Bellway and its chief executive, Jason Honeyman, are discussing the potential effect of the Your First Home scheme.
- What
- Honeyman said the scheme could boost Bellway’s annual homebuilding by around 10%.
- When
- He said completions could return to at least 10,000 homes a year from next September at the earliest.
- Where
- The scheme applies to England.
- Why
- The programme is intended to support first-time buyers purchasing new-build homes.
This story does not have two clearly opposing sides.
Andy Burnham announced the Your First Home scheme.
Bellway reported its annual results and Jason Honeyman said the scheme could boost the company’s annual home completions.
The government is expected to announce full details of the scheme, including its launch date, in the budget.
Honeyman said Bellway’s annual completions could return to at least 10,000 homes.
- Potential increase
- Around 10% in Bellway’s annual homebuilding
- Target completions
- 9,000 to 9,400 homes in the current year
- Previous-year completions
- 9,695 homes
- Equity loan
- 20% of the purchase price
- Minimum deposit
- 2.5%
- Scheme location
- England
What people are saying
Based upon our past experience with help to buy, the new scheme has the potential to boost volumes by around 10%, and with a market recovery, provide a path back to at least 10,000 homes a year and a return on equity of 15%.
provide significant support for first-time buyers
Sources
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