Market wrap: Budget boost for housebuilding and leisure stocks
Chancellor Rishi Sunak’s Budget brought another boost for listed housebuilders, as the government confirmed further help for homebuyers.
The government will guarantee mortgages for buyers who can afford only a 5% deposit, with Lloyds, NatWest, Santander, Barclays and HSBC offering such 95% mortgages from next month. A cut in stamp duty will also be extended.
Barratt Developments saw the biggest rise of any FTSE 100 stock, adding more than 7% to end the day at a year-high of 732.6p.
Chancellor Rishi Sunak’s Budget brought another boost for listed housebuilders, as the government confirmed further help for homebuyers.
The government will guarantee mortgages for buyers who can afford only a 5% deposit, with Lloyds, NatWest, Santander, Barclays and HSBC offering such 95% mortgages from next month. A cut in stamp duty will also be extended.
Barratt Developments saw the biggest rise of any FTSE 100 stock, adding more than 7% to end the day at a year-high of 732.6p.
Right behind Barratt was Persimmon, up by 6.8% at 2,895p, its highest since November. Taylor Wimpey was up 6% at a near year-high of 175.85p. In the FTSE 250 there was a 7.9% lift for Crest Nicholson, which ended the day at 366p, again its highest since almost 12 months ago.
With hopes of a better-than-expected economic recovery and fresh support for hospitality, there were also sizeable gains for retail-focused real estate owners and leisure companies.
These included Hammerson (up 8.2% to 31.26p, its highest since last September’s share consolidation), Cineworld (taken to a year-high of 113.65p by an 8.8% rise) and Whitbread (now at a year-plus high of 3,595p).
The FTSE 100 finished up 0.9% at 6,675. The FTSE 250 was up 1.2% at 21,436.
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