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UK Housebuilders Surge on State-Backed 2.5% Deposit Scheme
British housebuilders rallied on Monday after the government announced a state-backed equity loan scheme to help first-time buyers purchase new-build homes with deposits of just 2.5%. The Ministry of Housing, Communities and Local Government said the scheme, called 'Your First Home,' will be confirmed at next month's Budget and will operate in England, supporting 2.5% deposits backed by 20% government-backed equity loans for first-time buyers purchasing a new-build property from a participating developer. Shares of Berkeley Group Holdings, Persimmon, Barratt Redrow, Taylor Wimpey, Bellway, Vistry Group and Crest Nicholson Holdings plc rose between 3% and 14.5%. Buyers will access the equity loans with an initial interest-free period, which the government said could save those who use the scheme hundreds of pounds per month compared with a 95% mortgage. The government said the scheme will help tackle the deposit barrier for first-time buyers and act as a stimulus for a new-build market facing challenging headwinds, with developers expected to make a contribution when signing up to help cover costs.
BKG.LSE · Regulation · Positive Government's 'Your First Home' state-backed 2.5% deposit scheme is a policy stimulus for new-build demand, lifting Berkeley shares.
BTRW.LSE · Regulation · Positive Barratt Redrow rose as the government's state-backed equity loan scheme boosts first-time-buyer new-build demand.
BWY.LSE · Regulation · Positive Bellway gained on the government's 'Your First Home' scheme supporting 2.5% deposits for new-build buyers.
CRST.LSE · Regulation · Positive Crest Nicholson rallied on the state-backed deposit scheme stimulus for the new-build market.
PSN.LSE · Regulation · Positive Persimmon rose as the government's equity loan scheme aims to tackle the deposit barrier and stimulate new-build sales.
TW.LSE · Regulation · Positive UK government's 'Your First Home' state-backed 2.5% deposit equity loan scheme is expected to stimulate new-build demand, benefiting Taylor Wimpey as a participating developer.