The Your First Home programme, announced by Manchester Mayor Andy Burnham approximately two weeks prior to this report, has generated significant optimism among homebuilders following its introduction. The initiative represents a new government effort to address housing shortages by supporting first-time buyers in purchasing new-build properties. Bellway’s leadership expressed confidence that the scheme could meaningfully expand the company’s production capacity.
Under the programme’s framework, eligible first-time buyers in England will receive a government-backed equity loan representing 20% of a property’s purchase price, with a required down payment of just 2.5%. The initiative incorporates household income limits and price restrictions designed to target modest properties and exclude higher-earning applicants, distinguishing it from earlier help-to-buy programs. Full programme details and an official launch date are scheduled to be unveiled by Chancellor John Healey on 28 October during his first budget presentation.
Bellway Chief Executive Jason Honeyman, who has held the position since 2017, indicated the scheme could enable the company to reach annual completions of 10,000 homes, with the potential increase beginning in the 12-month period starting next September at the earliest. Based on the company’s historical experience with comparable assistance programmes, Honeyman projected approximately 10% volume growth alongside a potential return on equity of 15%. He acknowledged that some demand may temporarily shift as buyers await the scheme’s official launch.
Bellway reported annual revenue of £3.16bn for the year ending 31 August, representing 13% growth, with underlying profits before tax rising 5.7% to £305.7m. The company currently targets between 9,000 and 9,400 homes for the current year, reflecting reduced order volumes and sustained pressure on customer demand despite higher construction costs ranging from 3% to 4%. The forward order book stands at 4,981 homes valued at £1.4bn.
The Your First Home scheme is anticipated to provide substantial benefits to major housebuilders including Persimmon, MJ Gleeson, and Taylor Wimpey. Conversely, Berkeley Group and Vistry Group are expected to derive limited advantage, given their respective focuses on higher-priced London properties and affordable housing production.
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