Tory pledge lays foundations for rise in homebuilder shares
SHARES in residential building companies were given a boost yesterday, after David Cameron pledged to build 200,000 new affordable homes by 2020. The homes will be sold at a 20 per cent discount, achieved by removing levies and regulation on brownfield site properties.
Shares in Berkeley were up 1.45 per cent at the close, Bellway were up 1.16 per cent, Galliford Try closed up 0.6 per cent, Bovis Homes up 0.83 per cent, Barratt rose 1.36 per cent and Persimmon finished up 0.28 per cent
In a speech yesterday, the Prime Minister said: “If we continue on this current trajectory then we will be building 200,000 homes a year – not by 2020, as Labour hope to achieve, but by 2017.”
Housing is high on the political agenda, but some are not swayed by the parties’ promises. Duncan Stott, director of the Priced Out campaign said: “There’s very little sense that they feel able or willing to genuinely respond to the challenges that the priced out generation face.”
Campbell Robb, chief executive of homeless charity Shelter, said: “More piecemeal schemes won’t do – we need a big bold plan that will fix our broken house-building market for the long term, and finally put a stable home back within reach for generation rent.”