The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
A figure of 400,000 new homes is a good start to address the nation’s chronic shortage of homes, but it is still well below the annual rate the UK needs.
The lack of concrete reaction in the market is a sign, perhaps, that most investors are quite happy with the maintenance of the UK economy and its recovery.
Housebuilder shares are off the highs of the session, as some pre-statement exuberance is trimmed back, since the chancellor was unlikely to unveil anything that would stoke runaway house price inflation.
Having steadied the financial ship of state, Osborne now looks to cement his positions as a natural leader for the post-Cameron era. Today’s statement is just one part of that plan.