Builders' shares jump amid first-time buyer blueprint

Housebuilders have seen shares surge after the Government announced plans to boost first-time buyers across England.

The Your First Home initiative is set to help buyers sign for a new-build property with a 2.5 per cent deposit, with the Government stepping in to lend an extra 20 per cent towards the cost.

The blueprint buoyed builders’ stocks, with Coalville-headquartered Barratt Redrow jumping 12 per cent on the FTSE 100 and Sheffield-headquartered MJ Gleeson and York-based Persimmon rising 20 per cent and 15 per cent on the FTSE 250.

Newcastle-headquartered Bellway and High Wycombe-based Taylor Wimpey both additionally saw stock lift by at least ten per cent.

Elsewhere, kitchen supplier Howden Joinery – which has manufacturing bases in Howden and Holme-on-Spalding-Moor, in East Yorkshire; Normanton, in West Yorkshire; and Runcorn, in Cheshire – was up three per cent.

Home improvement retailer Kingfisher was up 1.3 per cent, with Derby-headquartered Mortgage Advice Bureau rising 5.1 per cent.

According to the Government’s plans – set to be outlined in next month’s Budget – people will be able to access equity loans with an initial interest-free period.

Developers will also be expected to contribute when signing up to the scheme, to help cover costs.

Paul Turner, chief executive of new-build home warranty and insurance provider the National House Building Council, described the new equity loan scheme as “a welcome boost for the industry”.

He said: “There is no one single solution to the housing challenge.

“Supply must also be addressed through accelerated planning reform and the easing of unnecessary regulatory burdens.

“What’s more, it’s vital to keep focus on maintaining quality in the construction of new homes.”

John Newcomb, Builders Merchants Federation chief executive, added: “We wait to hear about the exact details of this scheme, but it’s been clear that for too long housebuilding has been stagnant, and help is needed to rebuild confidence.

“Construction is a vital element of the UK economy, and one that has a massive impact on the nation’s financial position.”

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