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On Wednesday 26 March, Bellway will be posting an interim-earnings release, and traders are likely to be eagerly awaiting its comments to forward guidance.
This weekend UK chancellor George Osborne announced the current government’s Help to Buy scheme will be extended up until 2020. The aim of the scheme is to enable those who are not on the property ladder to get a foothold without having to stump up the significant deposits that were previously required.
Many people felt that this was the largest contributing factor to the house price bubble, however the flow of European and global funds into the UK and specifically the London market has been sizable. As an example, following the introduction of France’s new tax structure, the population of French citizens now living in London would see it become the sixth largest French city if it were in France.
Unsurprisingly we have seen most of the homebuilders bounce this morning following the weekend news. Bellway, like the others, has been up over 4% during the morning session. This longer-term government support should see the share price once again challenge its 2014 high, above the 1700p level, as well as a continuation of the strong bullish trend that the shares have enjoyed over the last year.