UK housebuilder stocks were moving higher after trading lower for much of the day Wednesday, as UK Prime Minister Theresa May told Conservative party members she would become the first UK leader in over 20 years to build a substantial number of new council homes.
According to a copy of her speech, May will tell delegates at the conference the Government will make £2 billion available for social housing.
“We will encourage councils as well as housing associations to bid for this money and provide certainty over future rent levels,” according to a copy of her speech, adding, “a new generation of council houses to help fix our broken housing market.”
UK housebuilder stocks gained ground Monday, although the disappointing September construction PMI weighed on that positive tone in Tuesday trading. A number of house builder stocks opened lower Wednesday, before moving higher during the speech.
The keynote speech that closes the Conservative party conference, follows a busy four-days for the under fire Prime Minster.
Brexit has featured in the speeches, as have a number of other, key topics, as Government cabinet members have taken to the stand to address party members.
May’s close ally Damian Green, spoke on the BBC Radio 4 Today programme Wednesday morning. He said the Prime Minister’s hosing plan would help the UK’s housing sector, across the board.
“It is a significant announcement,” Green said. “This is a Conservative government saying we want to help homeowners in private rent, but we also want to regenerate the social-rented sector as well,” he added.
The UK’s housing crisis has gained much news coverage over the past year or so and the Government has been encouraged to do more to build the homes the UK so desperately needs.
The UK’s population has grown sharply in recent years and despite any potential curbs on immigration Brexit might bring, the population is still set to expand going forward.
The problem in London is acute. The value of property has soared and is much higher than the rest of the UK average. Meanwhile, the population there has swelled as migrants and Britons from elsewhere in the UK, continue to flock to the city.