Bellway says fears of Autumn tax raid has hit housing demand
Housebuider Bellway has said that uncertainty over possible tax changes in the upcoming UK budget has dampened demand for housing.
Rumors of various property taxes that Rachel Reeves might introduce in this Autumn’s in an attempt to plug a £40bn gap in the nation’s finances while overhauling a complex system of levies and charges have been swirling since late summer.
The Treasury is reportedly looking into a range of options, including a national property tax on the sale of homes, a local annual property tax based on property values, and an introduction of capital gains tax on the sale of homes over £1.5m.
“Since the start of the new financial year there has been a continuation of weak consumer sentiment which has carried from late spring,” Bellway said in a statement to the London Stock Exchange.
“Customer demand has been affected by ongoing affordability constraints and uncertainties about potential taxation changes in the Government’s Budget in November 2025,” it added.
At the end of August, property experts noted that early signs of speculation about tax increases in the Budget had started to compromise confidence among some buyers, as did housebuilder Vistry. Surveyors expect house sales to remain largely stagnant over the next three months.
Vistry’s chief financial officer said that “we’ve got to avoid more procrastination”.
“The [November] Budget date … is a longer period of uncertainty. They don’t necessarily need to wait for the Budget for their housing pronouncements. If they can announce things earlier to create more certainty in the market, that would be a good thing,” he said.
The Budget is set to take place on 26 November, significantly later than last year when it was held in October.
Partner at Begbies Traynor Julie Palmer, however said that when buyer uncertainty lifts, changes in the Autumn may help Bellway in the long run.
“The market is still waiting for clearer signals on interest rates and housing policy, but easing inflation and continued talk of planning reform and attempts to iron out kinks and blockages in the buying process ahead of the Autumn Budget could offer some welcome relief,” Palmer said.
“Bellway [is] looking among the better-placed players to benefit when the cycle turns,” she added.
Overall, Bellway reported a better year of construction than expected as the tough conditions of the last few years started to improve.
Total housing completions increased by 14.3 per cent to 8,749 homes in the year ended July 31, up from 7,654 in 2024.
Its share price rose just over five per cent in early trades.