UK housebuilders could be in line for renewed government support as pressure mounts to revive demand in the housing market.
Panmure Liberum said there is “sufficient evidence” that policymakers will reintroduce demand-side stimulus for private new-build housing, in a move reminiscent of the Help-to-Buy scheme.
The broker argues current measures, including planning reforms and increased social housing funding, are not enough to meet housing targets, with private demand remaining subdued.
Recent trading updates suggest activity is broadly stable across most developers, though signs of weakness are emerging in London, adding urgency for intervention.
Any new scheme is expected to focus on lower-priced homes, benefiting builders such as Persimmon and MJ Gleeson, which are more exposed to first-time buyers.
Help-to-Buy previously accounted for a significant share of completions, at times contributing close to 30% of private housing output, and helped drive a sustained recovery in volumes.
However, analysts caution that stimulus takes time to feed through. It took around two years for the original scheme to materially lift completions.
With the government targeting higher housing delivery before the next election, Panmure said “time is the scarcest resource”, suggesting action may be needed within months.