Persimmon, Barratt and FirstGroup

“The FTSE 100 continued its steady march upwards in afternoon trading as housebuilders received a welcome boost from the Government’s housing White Paper,” says AJ Bell Investment Director Russ Mould.

“Builders were hit hard in the immediate aftermath of the EU referendum result, with investors fearing potential purchasers would be less willing or able to fund a deposit on a house as uncertainty engulfed the UK economy.

“While some of the measures included in today’s White Paper – including the introduction of a Lifetime ISA aimed at helping first-time buyers – had already been announced, investors were clearly swayed and construction firms have been among the big winners today. Persimmon’s share price has risen 2.6% on the back of the announcement, while rival builder Barratt’s enjoyed a 2.2% boost.

“Elsewhere FirstGroup, the firm behind franchises including Great Western Railway, TransPennine Express and Hull Trains, saw its share price rocket 5.5% as it reported a 12.8% surge in 2016 third quarter revenues. Much of the progress has been driven by its American business, however, and investors will want to see the UK business pulling its weight in 2017.”

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