Housebuilder share prices climbed on Tuesday as investors positioned themselves ahead of the chancellor’s Budget, betting that the the construction sector will escape any heavy new taxes and may even benefit from fresh support. The rally underscores growing confidence that the government is preparing to put housing delivery at the heart of its economic strategy.
The sharp rise in stock prices has intensified speculation that the chancellor could announce a new stimulus package aimed at boosting demand – potentially echoing initiatives such as Help to Buy or another scheme designed to support first-time buyers and kick-start new-build sales.
Investors appear to be pricing in the possibility of measures that would both strengthen demand and give developers greater certainty over future sales pipelines. Some expect tweaks to stamp duty to unlock activity, while others believe the government may prioritise further planning reforms or targeted incentives to accelerate housebuilding.
Regardless of what is announced by the chancellor today, Tuesday’s market reaction shows just how closely the sector is watching the Budget, with all major housebuilders seeing share price hikes, led by Barratt Redrow at 3.2%.
The BBC’s business editor, Simon Jack, posted on X last night: “Housebuilder shares all up sharply – Barratt, Taylor W. Redrow. Markets either think inflation forecast from OBR tomorrow is more benign than expected nailing on further interest rate falls or there’s something in budget on help to buy?”
The chancellor Rachel Reeves will deliver the Budget Statement following today’s Prime Minister’s Questions at 12.30pm.
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