Housebuilder stocks surge as investors bet on Starmer's pledge of new homes to build.

“Equity markets need certainty and stability in an increasingly volatile world,” according to Ben Ritchie, Head of Developed Market Equities for abrdn fund management company. Businesses with extensive exposure to the UK economy could stand to benefit if this new government takes an effective approach.” Housebuilders were among the biggest gainers on Tuesday, with Persimmon, Vistry, Barratt and Taylor Wimpey being some of the key FTSE 100 risers. Crest Nicholson shares saw significant increases after it rejected an all-share offer made by its rival Avant Homes owned by US hedge fund Elliott Advisors; Sky News reported this action by Crest’s board which was later declined.” Elliott would have become the largest shareholder of the combined group; for more details please see our Privacy Policy. Google ReCaptcha helps protect our website, with their Privacy Policies and Terms of Services applying accordingly.After four prime ministers in five years, sterling has rebounded since reaching an all-time low of $1.03 after Liz Truss’ mini budget caused financial markets to crash that required Bank of England intervention to prevent pension funds going bust. Labour’s election victory coincides with an improving economy. After an extended period of rising prices and reaching 11.1% inflation peaking in October 2022, inflation has returned to its target level of 2% set by the government. As inflation comes down, inflation-linked interest rates could soon start being cut; as is often seen with new governments. Kathleen Brooks from broker XTB stated investors would look closely at Labour in its early days in power as soon as their first 100 days are up – including how Sir Keir Starmer plans on increasing growth while simultaneously improving public services.