The UK’s five largest house-builders all saw their share prices rise sharply on Monday, after Chancellor George Osborne announced his plan to extend the Help to Buy equity loan scheme.
According to Reuters, the price hike in shares for Persimmon, Barratt Developments, Taylor Wimpey, Berkeley Group Holdings and Bellway, added more than £930m in value over the day.
The equity loan scheme – the first of two Help to Buy scheme phases – provides Government assistance for borrowers seeking to purchase a new-build home for up to £600,000 and has provided a significant boost to property developers.
Originally due to end in 2016, the Help to Buy 1 scheme has now been extended until 2020 with an extra £6bn being allocated by the Government. It is aiming to contribute an extra 120,000 homes to the housing stock in Britain.