UK homebuilders slump as budget's first-time buyer scheme disappoints
Analysts said the scheme could support only 10,000 to 15,000 sales a year and would do little to lift housing supply.
- The National House Building Council reported new home registrations fell 13 per cent to 26,231 in the third quarter of 2026, while Britain's leading housebuilders saw £1 billion in value wiped off yesterday.
- Despite Labour's 1.5 million home target for this Parliament, builders are shelving plans amid higher mortgage rates and planning delays; Housing Secretary Angela Rayner insisted she would not 'give up' on the goal.
- The South East and Northern Ireland recorded the steepest annual declines with a 32 per cent drop, while the rental and affordable housing sector fell 23 per cent to 7,872 from 10,225.
- Analyst Aynsley Lammin at Investec warned the Your First Home scheme could support "as little as 10,000-15,000 sales per annum," far short of the 300,000 annual homes target.
- Markets price a 90 per cent chance of a Bank of England rate hike on November 5; analyst Angeline Ong warned incoming borrowing costs could offset stimulus attempts for first-time buyers.
6 Articles
6 Articles
UK homebuilders slump as budget's first-time buyer scheme disappoints
Shares in British homebuilders slumped on Wednesday after finance minister John Healey's much-awaited scheme for first-time homebuyers disappointed investors with limited funding, a later-than-expected rollout and higher fees than developers anticipated.
British homebuilder shares slump on lack of clarity over first-time buyer plan in budget
Shares of British homebuilders plummeted following finance minister John Healey's budget speech about housing initiatives. The delays surrounding the launch and funding of the awaited 'Your First Home' scheme have analysts worried that it won’t receive long-term financial support. Prominent companies like Barratt Redrow, Taylor Wimpey, and Persimmon experienced sharp declines, which could further hinder the timeline for new site developments tha…
The Independent
The Independent (US)New UK home building slumps as housing industry faces 'critical point’
The government recently unveiled Your First Home, which will give first-time buyers the chance to buy a new build property with a 2.5 per cent deposit
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