25th November 2015
Housebuilding stocks have risen sharply this morning on the news that George Osborne is set to unveil a £7 billion new homes programme in the Autumn Statement later today.
At the time of writing the FTSE 100 is up 55 points with Persimmon, Taylor Wimpey, Barratt Developments and Berkeley Group leading the way.
Bovis, Bellway and Crest Nicholson are also helping boost the FTSE 250 which us up 140 points.
Laith Khalaf, senior analyst, Hargreaves Lansdown, says: “Shares in housebuilders have burst out of the starting blocks in early trading this morning, following the news that George Osborne is set to unveil a huge housebuilding programme. These companies stand to be prime beneficiaries of the government’s plans to address the housing crisis.
“Affordable housing is a big issue in the UK today and the government looks to be responding by turning on the supply taps. First time buyers are likely to benefit from the plans, but so are the developers who are going to going to build the hundreds of thousands of starter homes ordered by George Osborne.
“Just yesterday Bank of England policymakers hinted they are considering doing their bit for first time buyers by making buy to let mortgages more expensive. If they decide to take action, a perfect storm could be brewing for buy to let landlords who would not only face the prospect of a more expensive mortgage, but may also have to pay more tax on their rental income when new rules arrive in April 2017.”