Housebuilders boosted by measures to stimulate housing market

Published 24th Mar 2011

Housebuilders were buoyed by a package of measures designed to stimulate the housing market by helping first time buyers and property investors, writes John Stevens.

The government announced that first-time buyers will be offered deposits of tens of thousands of pounds to help them get on the property ladder. Under the FirstBuy scheme, buyers will be required to save a deposit worth 5pc of the property’s value, with 20pc offered by the government and housebuilders through an equity loan.

Shares in Redrow jumped 4.1p to 129.7p, Barratt gained 2.9p to 109.2p, and Taylor Wimpey Sir Martin Sorrell’s WPP is among a group of corporate exiles thinking of moving back to Britain firmed 1.04p to 41.96p.

The government also pledged to overhaul the planning system, including making applications more streamlined and developments more sustainable. Changes to stamp duty were welcomed as a way to stimulate investment into residential developments.

Investors buying multiple flats in a property will pay tax based on the individual property prices rather than the total purchase price, meaning in many cases they will pay a lower rate of stamp duty. Property experts said it will remove a significant barrier to institutional investment in the private rented sector.

Source: ' ThisIsMoney '

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