Bellway backs Your First Home as mortgage costs hit demand

Bellway has backed the government’s proposed Your First Home scheme as the housebuilder warned that mortgage costs and affordability pressures continue to constrain buyer demand.

The group said mortgage interest rates remain above their levels a year ago, contributing to weaker private reservations and a more cautious outlook for housing completions.

Bellway completed 9,695 homes in the year to 31 July 2026, up 10.8% from 8,749, but expects volumes to fall to between 9,000 and 9,400 during the current financial year.

Chief Executive Jason Honeyman (main picture) said the proposed first-time buyer scheme could provide “significant support” for purchasers struggling with affordability.

BUYER DEMAND

Bellway’s latest trading figures point to continued pressure on the private new-build market.

In the nine weeks from 1 August, the private reservation rate excluding bulk sales was 0.45 per outlet per week, down from 0.48 during the equivalent period last year.

Its forward order book also fell to 4,981 homes worth £1.44bn at 2 October, compared with 5,285 homes valued at £1.53bn a year earlier.

Bellway said: “Customer demand remains constrained by economic uncertainty and affordability pressures, with mortgage interest rates above prior-year levels.”

The housebuilder expects a greater contribution from bulk sales during the current financial year to support volumes and cash generation.

FIRST-TIME BUYERS

The government is expected to provide further details of Your First Home at the Autumn Budget on 28 October.

Honeyman said: “The UK continues to face a substantial shortage of new homes, while affordability remains a major barrier for many prospective buyers.

“We therefore welcome the Government’s proposed Your First Home scheme, which has the potential to provide significant support for first-time buyers.

“We look forward to further detail on the scheme and to engaging with Government on its design and implementation.”

Bellway said it has the financial strength, operational capacity and land bank to increase housing delivery as market conditions improve.