Housebuilders celebrate Chancellor’s stamp duty and mortgage guarantee moves

Housebuilders were among the best of the risers as investors digested a range of Budget measures from Rishi Sunak to keep the housing market buoyant.

Catching the eye was confirmation of a mortgage guarantee scheme to help first-time buyers onto the property ladder.

Mortgage borrowers who can only put up a 5% deposit will have the rest guaranteed by the government.

Sunak said PLL (), Natwest Group PLC (), Santander and are ready to launch the scheme next month with other major lenders set to join the scheme shortly.

The Chancellor also extended the stamp duty holiday until June and then said it would be staggered and only return to its pre-pandemic stating level of £125,000 from 1 October.

“Extending the stamp duty holiday until the end of June, then phasing it out until September should help avoid a sudden downturn in prices caused by the much-feared cliff-edge end,” said Ian Mackenzie from the Guild of Property Professionals.

“With the zero-rated stamp duty limit extended to £250k until the end of September and the average UK house price being £252k, it means that thousands of people can benefit from this incentive – particularly first and second-time buyers.”

Banking sector trade body UK Finance added: “We welcome the certainty an extension to the Stamp Duty holiday and a phased approach to its ending brings for buyers and sellers. 

“This will help prevent a cliff edge, reduce the risk of house sales collapsing and will prove beneficial for all parties involved in the housing market.”  

“The banking and finance industry supports innovation in the mortgage market, particularly measures which enable borrowers to realise their dream of homeownership, through lower deposits.  

PLC (), the UK’s largest housebuilder was one of the best risers on the FTSE 100 market, adding 5% to 2,852p following good results this morning.

rose 4.9% and Bellway 5.7%.