Bellway, the housebuilder, has benefited greatly from government and central bank action over the past decade. Policies such as Help to Buy, which allows first-time buyers to purchase a home with only a 5pc deposit, and exceptionally low interest rates have combined to create good trading conditions for the business.
Now Questor believes that the firm could benefit from further measures. Notably, the Chancellor’s recently announced stamp duty holiday may encourage homebuyers to bring forward their plans in order to avoid up to £15,000 in tax.
The scheme means that around 90pc of homebuyers will not pay stamp duty and the average bill will fall by £4,500. The temporary nature of the scheme, which is due to end on March 31 2021, could stimulate a housing market that recorded only half as many transactions in May as in the same month last year.
An increase in buying activity may help to overturn the longest decline in house prices since the global financial crisis. They have fallen in each of the past four months, although they are still 2.5pc higher than they were a year ago.
House prices could be further helped by the Bank of England’s rock-bottom interest rates. It is making homes more affordable by reducing the proportion of disposable income spent by homeowners on mortgage payments. Rates may have to stay low for a long time to combat weak consumer confidence, which in April reached its lowest level since the financial crisis.