House builders extra £4 billion “help to buy” in budget
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Housebuilders have been buoyed by the budget with the Chancellor George Osborne with an extra £4 billion for new homes with house builders looking to meet the ever growing demand for homes although he still faces a Everest style deficit .
The extra £4 billion will be used to boost the number of homes available under the help to buy scheme with another 135,000 extra homes to be built over the course of the parliament and also announcing that build an extra 400,000 homes could and should be built by 2020/21.
There could be a very large obstacle to achieving this ambitious quota the manpower and skills to complete this vision of obtainable homes as reported regularly by Nationaltradesmen skills shortages.
Private builders and local authorities would be the winners and could share a reported £6.9 billion boost in there revenues over the period to 2021 this news has sent the FTSE 100 listed housebuilders share price upwards by substantial with Persimmon gaining 87p or 5% to 1869p and Barratt Developments, Berkeley Homes and Taylor Wimpey all rose 4%.
In the FTSE 250 we have more of the same with, Bovis Homes, Bellway and Crest Nicholson advanced 3%.
Peter Andrew, deputy chairman of the Home Builders Federation commented saying; “Whilst there has been a significant increase in house building, the scale of the challenge requires further action to close the gap between demand and supply. The Chancellor’s announcements should provide further impetus.”