Budget 2026: Housebuilder shares jump as Healey confirms first-time buyer scheme

Housebuilder shares experienced a significant surge on Wednesday following Chancellor John Healey's confirmation of a new scheme aimed at providing first-time buyers with access to £4.7bn of government-backed lending. The Chancellor announced that this equity loan scheme would be available from the following spring to those without the support of family members, allowing them to purchase a home with a minimum deposit requirement of just 2.5%.

Housebuilders have welcomed the scheme, as it comes at a time when they've been struggling due to soaring mortgage rates and increased building costs resulting from the Iran war.

The 'Your First Home' scheme, modeled after the previous Help to Buy initiative introduced by George Osborne in 2013, aims to encourage more homeownership among first-time buyers. Beleaguered housebuilder Vistry saw a nearly five percent increase in share price, while Berkeley, Barratt, and Bellway also reported gains during Healey's speech at the despatch box.

Healey assured housebuilders that he would not impose more red tape on the industry during the remainder of this parliament, unless it was deemed necessary. Furthermore, the Chancellor pledged to remove any major changes to building regulations, except in cases where they were critical for safety, and to exempt land sold to social housing providers from VAT. He also committed an additional £1.5bn to the social and affordable housing programme, emphasizing his commitment to increasing the number of homes built.