Shares in housebuilders, including Vistry Group PLC (LSE:VTY) and Barratt Redrow PLC (LSE:BTRW), were on the front foot on Tuesday after the government announced £2 billion of new funding to support social and affordable housing.
An announcement from HM Treasury and the funding will be "a down payment... ahead of more long term investment in social and affordable housing planned later this year, which will provide additional funding for 2026-27 and well as for future years".
New affordable homes will start construction by March 2027, it added, with the cash designed to "unlock development and opportunity on sites that are ready and waiting".
Deputy PM and Housing Secretary Angela Rayner said: "This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder."
Rayner has set a target of building 1.5 million homes, which she said was "the biggest increase in social and affordable housing in a generation".
Also quoted in the statement, Chancellor Rachel Reeves mentioned a figure of 18,000 new homes.
Also on Tuesday, the sector was given further support as mid-cap builder Bellway PLC (LSE:BWY) put out a solid set of interim results, with guidance for the full year maintained for 11% volume growth and a good start reported to the second half, with the sales rate for February and March up by 13% year-on-year.