Vistry Group PLC (LSE:VTY) shares jumped 9% to 715p, to lead a second day of gains across the housebuilding sector, after reports that Chancellor Rachel Reeves will allocate billions of pounds to affordable homes.
Today's government spending review will include £39 billion for affordable homes at its centre, newspapers including the Financial Times reported.
Reeves will nearly double government spending on affordable housing, with grants to be spent from 2026-2036 for local authorities, private developers and housing associations.
Vistry has a major 'partnerships' business that develops homes in collaboration with housing associations.
Reeves will allow social landlords to raise rents by one percentage point above inflation, the Guardian reported, which had been a key lobbying demand of housing providers.
The extra spending for Angela Rayner's Department of Housing, Communities and Local Government will reportedly be paid for by Reeve's tweaked governmebt borrowing rules.
We are investing to get Britain building again. https://t.co/OQqoY63h8m
— Rachel Reeves (@RachelReevesMP) June 11, 2025
Other housebuilding shares were also on the rise on Wednesday morning, the second day of gains for the sector after the previous day was boosted by expectations of more Bank of England interest rate cuts and a positive trading update from Bellway PLC (LSE:BWY).
Crest Nicholson PLC (LSE:CRST) was up 5.7%, Bellway another 3.3%, Persimmon PLC (LSE:PSN) 2.6%, and fellow blue-chips Barratt Redrow PLC (LSE:BTRW), Berkeley Group Holdings PLC (LSE:BKG) and Taylor Wimpey PLC (LSE:TW.) up between 1-2%.