Chancellor Rishi Sunak’s Budget brought another boost for listed housebuilders, as the government confirmed further help for homebuyers.
The government will guarantee mortgages for buyers who can afford only a 5% deposit, with Lloyds, NatWest, Santander, Barclays and HSBC offering such 95% mortgages from next month. A cut in stamp duty will also be extended.
Barratt Developments saw the biggest rise of any FTSE 100 stock, adding more than 7% to end the day at a year-high of 732.6p.
Right behind Barratt was Persimmon, up by 6.8% at 2,895p, its highest since November. Taylor Wimpey was up 6% at a near year-high of 175.85p. In the FTSE 250 there was a 7.9% lift for Crest Nicholson, which ended the day at 366p, again its highest since almost 12 months ago.
With hopes of a better-than-expected economic recovery and fresh support for hospitality, there were also sizeable gains for retail-focused real estate owners and leisure companies.
These included Hammerson (up 8.2% to 31.26p, its highest since last September’s share consolidation), Cineworld (taken to a year-high of 113.65p by an 8.8% rise) and Whitbread (now at a year-plus high of 3,595p).
The FTSE 100 finished up 0.9% at 6,675. The FTSE 250 was up 1.2% at 21,436.
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