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UK housing demand seen recovering on clearer post-budget outlook
Clarity from the UK Budget boosts confidence in a Bank of England rate cut next month, lifting housebuilder stocks like Persimmon by 3% and major banks by up to 3%.
- Friday, Persimmon and other listed housebuilders rose about 1% to 3% as analysts said Finance minister Rachel Reeves' budget cleared uncertainty and could support a gradual housing rebound.
- Uncertainty over the budget hurt sales in recent weeks, with Zoopla, property website, showing an 8% year-on-year drop in homebuyer demand in October.
- Market analysts noted that Joshua Mahony at Scope Markets said there is 'greater confidence' the Bank of England will respond with a rate cut next month, supporting lower rates after the budget.
- There was no change to stamp duty and improving debt forecasts pushed government bond prices up, creating a more favourable lending environment and lowering long-term mortgage rates for borrowers.
- Rachel Reeves introduced an annual charge in England from 2028 of 2,500 pounds on homes worth more than 2 million pounds, rising to 7,500 pounds over 5 million, with analysts expecting minimal broader market impact but noting Berkeley may be hit hardest.
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UK housing demand seen recovering on clearer post-budget outlook
Demand for new homes could gradually recover next year, giving British homebuilders a much-needed boost, analysts and some investors said after finance minister Rachel Reeves' budget cleared uncertainty that held buyers back.
·United Kingdom
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Coverage Details
Total News Sources7
Leaning Left2Leaning Right0Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
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