Fears of Labour budget tax hikes has hit demand for new homes, says Bellway boss

Bellway boss Jason Honeyman (pictured) has accused ministers of effectively ‘talking down’ the property market

The threat of tax hikes in the Budget has hit demand for new homes, according to one of Britain’s biggest builders.

Bellway’s boss accused ministers of effectively ‘talking down’ the property market through their gloomy tone. Jason Honeyman told the Financial Times: ‘We have many customers who have got concerns about the October Budget so they are delaying decisions.’ 

His comments came after weeks of speculation over which taxes Rachel Reeves will raise in her first Budget on October 30 as she struggles to balance the books.

The Chancellor is said to planning to hike national insurance contributions for businesses, capital gains tax and inheritance tax. 

A raid on pensions and an increase in fuel duty are also on the cards.

Bellway posted a 30 per cent slump in annual revenues to £2..4billion and a 62 per cent drop in profits to £183.7million. 

It sold 7,654 newly built homes in the 12 months to the end of July, more than 3,000 fewer than the previous year.

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