Investors respond to Tory election triumph by buying big
Shares in listed housebuilders rocketed this morning following Boris Johnson’s comprehensive general election victory.
The Conservatives made it a manifesto promise to build a million new homes over the next five years although, at 200,000 homes a year, this was less than the last administration’s plan for 300,000 new homes annually by the mid-2020s.
Investors nevertheless clearly believe that the housing sector will have a brighter future under a majority Conservative administration and several housebuilders have seen double-digit share-price increases today.
In early trading, Taylor Wimpey shares rose 15% to 200p, while Barratt Developments and Berkeley Homes both registered rises of 13%, taking their share prices to 755p and 5,084p respectively.
Persimmon and Bellway were up 11%, to 2,784p and 3,086p, while Bovis and Redrow saw their stocks rise by 9% to 1,363p and 746p respectively.
Listed contractors also benefited from the Tory landslide.
Shares in materials group Breedon rose 12% to 78p, while structural steel firm Severfield saw its stock increase by 9% to 79p.
Shares in Kier rose 5% to 92p and Morgan Sindall’s stock increased by 4% to 1,560p.