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Housebuilder shares rally on Iran war peace hopes and help-to-buy revival
['Felix Armstrong', 'Retail Reporter']
City AM
Housebuilder shares rally on Iran war peace hopes and help-to-buy revivalVistry and Barratt Redrow shares jumped on Monday (Steve Parsons/PA Wire)Shares in leading London’s listed housebuilders jumped on Monday as investors bet a potential Iran war peace deal and a mooted new help-to-buy scheme would provide a boon to Britain’s flagging property market.
Analysts pointed to renewed hopes of a Middle East peace deal and rumours that the government is reviewing measures to boost demand for homes as reasons behind this uptick in housebuilding stocks.
Shares in the UK’s housebuilders have slumped since the Iran war broke out in February as they contend with soaring building costs and falling consumer confidence.
Anthony Codling, an analyst at RBC Capital Markets, told City AM that renewed prospects of an Iran peace deal would “lead to a reduction in mortgage rates, aiding housing affordability and demand”.
Russ Mould, investment director at AJ Bell, said that it is “perfectly possible” that hopes of a new Help to Buy scheme and renewed optimism of a US-Iran peace deal are fuelling a housebuilder rally.