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.
It was not clear in the Budget what messures might be taken to make more land available for development or how compulsorary purchase might be stepped up.
The Chancellor commissioned an urgent review to look at time between planning permissions granted and the number of housing starts made. Hammond said the government wanted to avoid being dependent on the major national housebuilders.