Shares in UK housebuilders were well bid in early trading after fresh data showed the property market is enjoying its busiest May since 2021.
Figures from property portal Zoopla revealed a sharp uptick in sales activity, driven by falling mortgage rates, more relaxed lending criteria, and a 13% rise in homes for sale compared with last year.
Sales have surged since Easter, with buyers returning to the market despite the end of stamp duty relief.
Zoopla estimates buyers can now borrow up to 20% more than earlier in the year. However, prices remain flat overall, with average discounts of £16,000 below asking.
Growth remains concentrated in northern England and Scotland, where affordability is stronger, while oversupply and weaker demand are keeping a lid on prices in the South.
Blackburn has emerged as a standout, with prices up over 14% in the past year.
Builders Taylor Wimpey PLC (LSE:TW.) and Persimmon PLC (LSE:PSN) featured on the FTSE 100 leader board in early deals with gains of around 1%.