Housebuilders' shares are on the road to recovering the losses they sustained after the Brexit vote on the back of chancellor Philip Hammond's announcement of a £5bn stimulus package for the industry.
Hammond said yesterday that he would be setting aside money to encourage developers to build on surplus public land and to fund more rapid building techniques such as offsite construction.
The FTSE 100 went above the 7,000 mark this morning after the pound plunged to a 16-month low, and housebuilders are reaping the rewards.
Berkeley Group was recently relegated from the FTSE 100 due to its losses on 24 June. Today its share price was up one per cent.
Businesses have welcomed the chancellor's new building plans - and his promises to invest in infrastructure - but would like to know more details.
Institute of Directors economist James Sproule said:
Soon, businesses will need to see this positive mood music turn into something more concrete.
The City will have to wait until Hammond's first Autumn Statement on 23 November to find out more about his construction plans.
"We're facing Brexit being triggered by the end of March. There's a lot of pressure on [Hammond] I think on 23 November," said Sean McKee, director of the London Chamber of Commerce and Industry. "It sounds good, looks good - let's see the colour of his money on the 23rd."