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The Markets
by Proactive
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Proactive UK has moved.
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Builders and building materials

Housebuilders get Labour landslide boost with 1.5m new homes on the agenda

The housebuilding sector was given a boost as Labour swept to power with the long-predicted landslide victory.

Stock in Barratt Developments PLC (LSE:BDEV), Persimmon PLC (LSE:PSN), Vistry Group PLC (LSE:VTY) and Taylor Wimpey PLC (LSE:TW.) led the FTSE 100 with gains of 2%-3.5% in a busy morning session.

The impetus was provided by the new government's plan to provide 1.5 million new homes and add 300 planning officers to council rosters to unjam a sclerotic approval system.

Aruna Karunathilake, Portfolio Manager at fund manager Fidelity said: "That should alleviate builders’ concerns about planning bottlenecks impeding growth in the medium term.

"We have been confident for some time about the attractive long-term prospects for companies exposed to the housing sector because build rates need to rise to address Britain’s growing housing deficit."

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