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Builders and building materials

Persimmon, Barratt rally on government's new planning proposals

Housebuilders continued to track higher after the changes to planning policies announced yesterday by the government.

Persimmon was up 4% at 1,416p, Taylor Wimpey 2.3% at 144.7p and Barratt 2.1% at 476.1p.

Making it easier for developers to secure planning permission on brownfield land was the aim and US bank Citi said this should be achievable through the new plans.

Planning authorities in England's 20 largest cities and towns will now be subject to presumption in favour of brownfield development.

Also proposed were changes to Permitted Development Rights (PDRs) to support larger extensions and loft conversions of existing homes as well as the conversion of commercial buildings to new homes.

London. in particular, was highlighted as a region that would benefit from these proposals.

“While the current focus on planning reforms is much needed, we believe the development pipeline in London also struggles from achieving site viability and constraints to buyer affordability which makes volume housebuilding more challenging”.

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