The Budget was not overly kind to the UK’s biggest housebuilders as the Chancellor made clear he would look to reduce their level of influence.
Housebuilder stocks took an immediate hit post-Budget, with Barratt, Persimmon, Taylor Wimpey and Berkeley all seeing their share prices fall. Berkeley was the biggest faller – down 2.69% to 3654.
In his speech the Chancellor announced a range of new housing policies, including more funds for smaller housebuilders and a probe into potential holding of land by major housebuilders.
Driving prices higher
Major UK housebuilders have long been accused of deliberately keeping housing supply lower as they sit on land banks in order to drive up prices.