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Housebuilder share prices climb on chancellor's £5bn stimulus package for the industry

Helen Cahill
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Housebuilders' share prices were badly hit by the Brexit vote (Source: Getty)

Housebuilders' share prices have been climbing today after chancellor Philip Hammond announced he would be providing a £5bn stimulus package for the industry.

Hammond will be setting aside £3bn to help build 25,000 homes during the parliament and a further £2bn to encourage developers to build on surplus public land.

At time of writing, Persimmon's share price was up 1.71 per cent. Barratt Developments' share price was up 1.89 per cent, and Taylor Wimpey's share price was up 2.21 per cent. Berkeley Group's share price was up one per cent.

Read more: Philip Hammond to announce £5bn homebuilding stimulus package

Housebuilders were some of the worst hit by the Brexit vote. Berkeley Group was relegated from the FTSE 100 after its share price dropped by 17 per cent on the day after the EU referendum. The share prices of the housebuilders that remain in the FTSE 100 have not yet recovered from the falls after the Brexit vote.

The UK's housing crisis has come back into focus recently as house prices have returned to growth following the lull that came immediately after the EU referendum. Berkeley Group went on a rant about London's lack of housing last month, saying that small and medium sized developers needed support in order to boost building.

Sadiq Khan has also announced an investigation into foreign home ownership in London, arguing that the capital needs to know "the scale of what's going on, and what action we can take to support development and help Londoners find a home".

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