Persimmon's share price rose over 2.5 per cent on the speech, while Taylor Wimpey rose over 3.5 per cent. Barratt Developments was up over 3.4 per cent. Berekeley Group also rose by close to 1.5 per cent.
"Reform to improve schools, investment to build homes and infrastructure – because we know that’s the only way to deliver real opportunity and social mobility," Osborne said.
Traders said investors were encouraged by government plans to encourage building of new homes on brownfield land, as well as relief that there were no additional taxes or levies announced for the sector, especially given the stamp duty on some properties rise in April, according to Reuters.
However, Melanie Leech, chief executive of the British Property Federation, was unhappy about the government's decision not to include an exemption on large-scale property investors from the three per cent stamp duty land tax surcharge on additional homes.
"The government's decision to not include an exemption for investors who are purchasing large portfolios of properties for rent is extremely disappointing, and deals a huge blow to the build to rent sector," she said.
"This is going to be a significant deterrent to the institutional investment currently poised to settle in the purpose-built rented sector, which has the opportunity to deliver a significant number of new, quality affordable homes."
Meanwhile, oil and gas stocks also rose, while the FTSE 100 was up over 0.65 per cent.