Shares jump for housebuilders as stamp duty survives mini-budget u-turns
Shares jumped for this afternoon after stamp duty cuts survived Jeremy Hunt’s mini-budget backtrack.
Major players like Barratt Developments, Persimmon and Taylor Wimpey all saw their stock rally after the new chancellor’s emergency statement this morning.
Barratt’s shares climbed nearly four per cent, whilst Persimmon and Taylor Wimpey were up nearly five per cent.
Hunt backed the new stamp duty plans announced by Kwasi Kwarteng last month, which included that no stamp duty must be paid on the first £250,000 of a property —up from the previous £125,000 threshold.
First-time buyers will pay stamp duty at £425,000 provided that the property they are snapping up doesn’t cost more than £625,000.
The rules equate to a saving of up to £2500 for home movers, the government estimate.
Head of Investment at interactive investor Victoria Scholar said that whilst housebuilders were the hardest hit by the market mayhem of the mini-budget, they were suddenly trading near the top of the UK index today —not only benefitting from the levy axe but also from the falling price of borrowing.