Introduction: UK housebuilder stocks soar on new homes scheme
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UK housebuilder stocks are flying this morning as investors rejoice at a new homes scheme for first-time buyers in England.
Shares in Barratt Redrow have surged 14%, making it the best performer across the FTSE 100. Housebuilders are dominating the FTSE 250 index too, with Vistry, Persimmon, Taylor Wimpey and Bellway all up between 14% and 16% this morning.
It comes after AndyBurnham unveiled plans over the weekend for a new help-to-buy scheme.
The programme, called “Your first home”, is intended to help buyers in England who have a regular income but have been unable to save for a large deposit or don’t have financial support from their family.
Under the scheme, first-time buyers will get a 20% equity loan to help them buy a new-build home, with an initial interest free period and a requirement of a minimum deposit of just 2.5%.
There will be household income caps and a deposit cap to exclude those on the biggest salaries and with big savings pots. There will also be price caps on the value of the properties.
Richard Hunter, head of markets at the broker Interactive Investor, said the new policy would be a welcome boost for the industry.
The housebuilding sector has been beleaguered by a raft of headwinds ranging from higher mortgage rates and strained affordability to a slow planning process for new homes and the announcements have provided a rare and overdue relief rally from investors.”
The agenda
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