By Raechel Thankam Job (Reuters) -Britain's major homebuilders are urging the government to eliminate stamp duty and establish a long-term deposit scheme for first-time buyers to boost market
Bellway's CEO Calls for Reinstatement of Stamp Duty Relief for First-Time Buyers
(Corrects headline to clarify CEO called for government to undo stamp duty changes for first-time buyers)
By Raechel Thankam Job
(Reuters) -Britain's major homebuilders are urging the government to eliminate stamp duty and establish a long-term deposit scheme for first-time buyers to boost market sentiment, Bellway's chief executive said on Tuesday.
The housing sector has been facing challenges as affordability pressures and weak consumer sentiment dampen demand despite homebuilders' attempts to lure buyers through incentive schemes such as deposit top-ups and discounts amid a lack of measures from the government.
"Not every young person has the benefit of the banker mum and dad or family financial help to support them," Bellway CEO Jason Honeyman said in a conference call with analysts after the company reported its results.
Since the expiration of temporary stamp duty relief in April, first-time buyers in England now pay tax on homes costing over 300,000 pounds ($397,890).
Honeyman said he, along with other major builders, has requested the Labour government, which made housing a key pillar of its plans to boost economic growth, to undo the stamp duty costs on first-time buyers, and to establish a deposit scheme.
"If we can have that support, which isn't big numbers at the bottom of the housing ladder, we think that will improve the sector and get the market moving."
Last week, the opposition Conservative Party leader Kemi Badenoch made a surprise promise to scrap stamp duty on British people buying their main homes.
The British government is revising its planning system overhaul to help meet its target of building 1.5 million homes by 2029 — a goal it is currently projected to miss by 200,000 homes.
($1 = 0.7540 pounds)
(Reporting by Raechel Thankam Job and Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala)
