UK Housebuilders Surge on State-Backed 2.5% Deposit Scheme

Investing.com··GB·Read original
3▲7 ▼0Impact / 5
Summary · why it matters

British housebuilders rallied on Monday after the government announced a state-backed equity loan scheme to help first-time buyers purchase new-build homes with deposits of just 2.5%. The Ministry of Housing, Communities and Local Government said the scheme, called 'Your First Home,' will be confirmed at next month's Budget and will operate in England, supporting 2.5% deposits backed by 20% government-backed equity loans for first-time buyers purchasing a new-build property from a participating developer. Shares of Berkeley Group Holdings, Persimmon, Barratt Redrow, Taylor Wimpey, Bellway, Vistry Group and Crest Nicholson Holdings plc rose between 3% and 14.5%. Buyers will access the equity loans with an initial interest-free period, which the government said could save those who use the scheme hundreds of pounds per month compared with a 95% mortgage. The government said the scheme will help tackle the deposit barrier for first-time buyers and act as a stimulus for a new-build market facing challenging headwinds, with developers expected to make a contribution when signing up to help cover costs.

Impact on assets 8

Consumer Discretionary▲ · 7 stocks
The Berkeley Group Holdings plc
BKG
▲ PositiveRegulationrelevance

Government's 'Your First Home' state-backed 2.5% deposit scheme is a policy stimulus for new-build demand, lifting Berkeley shares.

Barratt Redrow plc
BTRW
▲ PositiveRegulationrelevance

Barratt Redrow rose as the government's state-backed equity loan scheme boosts first-time-buyer new-build demand.

Bellway PLC
BWY
▲ PositiveRegulationrelevance

Bellway gained on the government's 'Your First Home' scheme supporting 2.5% deposits for new-build buyers.

Persimmon PLC
PSN
▲ PositiveRegulationrelevance

Persimmon rose as the government's equity loan scheme aims to tackle the deposit barrier and stimulate new-build sales.

Taylor Wimpey PLC
TW
▲ PositiveRegulationrelevance

UK government's 'Your First Home' state-backed 2.5% deposit equity loan scheme is expected to stimulate new-build demand, benefiting Taylor Wimpey as a participating developer.

Vistry Group PLC
VTY
▲ PositiveRegulationrelevance

The government-backed 2.5% deposit scheme for new-build homes is a policy stimulus that should support Vistry Group's new-build sales.

Defense & Geopolitical Fragmentation▲ · 1 stocks
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