European shares moved higher on Monday, with gains in the broader market supported by a sharp rise in UK housebuilder shares following confirmation of a new government support programme for first-time buyers.
The pan-European STOXX 600 was up 0.3% at 640.43 points by 0725 GMT, with most major regional markets also trading higher. The advance was led by the UK housing sector, where shares responded strongly to plans for a new equity loan programme expected to be confirmed in next month’s Budget.
The proposed scheme is intended to support first-time buyers and encourage new home construction, reviving a form of government assistance that has previously played a role in the UK housing market. The announcement provided a clear catalyst for housebuilders, with Persimmon, Barratt Redrow, Taylor Wimpey and Vistry among the companies recording significant share price gains.
The move gives the sector a new potential source of demand at a time when affordability constraints and weaker buyer activity have weighed on the UK housebuilding market. Further details of the programme, including how it will operate and the level of support available, are expected to emerge with the Budget.
Construction-related companies also benefited from the shift in sentiment towards the sector, highlighting the potential wider impact of measures designed to support new home construction.
JPMorgan European Discovery Trust plc is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
