Proactive Investors - Shares in leading housebuilders were broadly higher after news the government plans to build 1mln new homes as part of an urban housebuilding programme.
In a news release, PM Rishi Sunak said: "Today I can confirm that we will meet our manifesto commitment to build 1mln homes over this parliament."
"We won’t do that by concreting over the countryside – our plan is to build the right homes where there is the most need and where there is local support, in the heart of Britain’s great cities," he added.
As part of the plans the government is planning “a new urban quarter in Cambridge which will unlock the city’s full potential as a source of innovation and talent."
But that hasn't gone down well with local MP, Anthony Browne.
Cambridge already has about the highest housebuilding in the country, and under the local plans that is set to double with 50,000 new homes by 2050, effectively doubling the size of Cambridge. But there is one major problem: we have run out of water.— Anthony Browne MP (@AnthonyBrowneMP) July 24, 2023
He called the plans "nonsense" and pledged to do all he could to block them.
Kate Henderson, chief executive of the National Housing Federation, told the BBC's Today programme a much bigger” housebuilding plan was needed.
She said that, although there were some positive features in the announcement, more ambition was needed.
But the plans were better received in the City where housebuilders were broadly higher.
Persimmon (LON:PSN) rose 1.9% while Barratt Developments (LON:BDEV) and Berkeley Group were 0.7% to the good.