UK housebuilder shares rally on plan to revive homebuyer support
UK housebuilder shares rally on plan to revive homebuyer support
By Raechel Thankam Job and Simone Lobo Mon, September 28, 2026 at 9:07 AM UTC
0
By Raechel Thankam Job and Simone Lobo
Sept 28 (Reuters) - British housebuilder stocks surged on Monday after the government confirmed plans to introduce a new programme for first-time buyers in next month's budget in a bid to revive a sector battered by weak demand and affordability constraints.
The policy, a revival of the "Help to Buy" scheme which expired in 2023, is aimed at injecting growth into the economy while helping first-time buyers onto the property ladder.
The move could deliver the biggest boost yet to a sector mired in a prolonged downturn driven by high borrowing costs, inflation and weak demand.
Shares in building materials suppliers, hit by years of sluggish construction, jumped too.
Homebuilders including Barratt Redrow, Bellway and Taylor Wimpey have pressed the government to restore first-time buyer support, arguing that their own sales incentives had failed to substantially lift demand and had squeezed margins.
"It is important now that the Government moves quickly to implement the scheme," said Neil Jefferson, CEO of the Home Builders Federation.
Barratt Redrow's new CEO Dean Banks, who took over the role last week, welcomed the initiative and called for it to be introduced as soon as possible.
Advertisement
The equity loan programme announced on Saturday will allow first-time buyers to borrow up to 20% of a home's value against a 2.5% deposit, with an initial interest-free period.
It also plans to introduce a household income cap to ensure support is targeted at those who need it, the government said.
In contrast, the previous Help to Buy scheme required a 5% minimum deposit, against 20% government-backed equity loans. The scheme also provided a five-year interest-free period.
Further details on the new programme will be unveiled in the budget next month.
The British homebuilders' index jumped 16% to hit its highest level since March 2026, although it remains at around half the level it was until a sharp slide that started in 2022.
Shares in Persimmon, Barratt Redrow, Taylor Wimpey, Vistry and Berkeley Group rose between 6% and 23%, leading gains across London's indices.
UK building materials suppliers Ibstock, Forterra, Marshalls, Breedon and Topps Tiles rose between 5% and 20%.
London's FTSE 250 midcap index, which contains a number of construction company shares, was up 1%, making it one of the top-performing indexes in Europe on Monday.
(Reporting by Danilo Masoni and Simone Lobo; Writing by Yadarisa Shabong; Editing by Amanda Cooper, Rashmi Aich and Louise Heavens)
Source: “AOL Money”
