Housebuilder Bellway has urged the government to slash stamp duty without delay and introduce a government-backed deposit support scheme for first-time buyers, as Britain's housing market grapples with weakening demand.

The FTSE 250 company said on Tuesday that housing demand has been hit by last year's pre-Budget speculation and recent rises in mortgage rates triggered by the Iran war.

Jason Honeyman, Bellway's chief executive, said the company is "in a strong position to capitalise on future growth opportunities" but called on the government to stimulate demand through tax cuts.

"We call on the government to act now to improve access to housing across all tenures," Honeyman said. "In order to ease affordability constraints and stimulate demand, an immediate reduction in stamp duty alongside a government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country."

Stamp duty, a tax paid by property buyers, has long been a focal point for the housebuilding sector because it directly affects transaction costs and is seen as a lever policymakers can pull quickly to influence buyer behaviour. Successive governments have periodically adjusted thresholds and relief bands to support activity during periods of market stress, most notably for first-time buyers, who often face the combined challenge of saving a deposit and covering purchase taxes.

Bellway's appeal puts it alongside other major housebuilders, including Barratt Redrow, in pressing the government to intervene and shore up housing demand. Property portal Rightmove has argued that a package of policies aimed at improving affordability for first-time buyers would lift demand and make housebuilding more viable.

Prime Minister Andy Burnham has previously pushed back against speculation that he was considering abolishing stamp duty. Following reports that he planned to scrap the levy and council tax in favour of a land-value tax system, Burnham said last month that this "won't be happening."

"I don't know actually where some of the stories that have appeared over the last 24 hours have come from," the Prime Minister said.

Bellway told investors it is "continuing to exercise tight control" over its finances and prioritising cash generation to weather what it described as a difficult period for the sector.

"Our industry continues to face challenging headwinds, increasing the risk of a more prolonged period of softer customer demand alongside renewed inflationary pressure on build costs," the group said.

Despite the headwinds, the company expects total housing completions for the 12 months to the end of July to rise 10.8 per cent to 9,695 homes, up from 8,749 the previous year. Underlying operating profit is projected at approximately £320m, compared with £303.5m in 2025.

Shares in Bellway fell one per cent to 2,072p on Tuesday, leaving the stock down 24 per cent year to date.