British homebuilders jump after landslide Labour victory in UK election

Investing.com — Shares in British house constructor stocks rose on Friday, buoyed by hopes that the Labour Party would follow through on a campaign promise to build more than a million homes following a landslide victory in this week’s U.K. parliamentary election.

Homebuilders Barratt Developments (LON:) and Taylor Wimpey (LON:) both advanced by more than 2%, while peer Persimmon (LON:) jumped by over 4%.

As of 04:40 ET, Labour, led by Keir Starmer, had won 411 of the 650 seats in parliament, giving it a large majority with a handful of seats yet to declare, ending 14 years of often turbulent Conservative government.

In the build-up to the vote, Labour officials campaigned on the promise that they would push to build 1.5 million homes over the next five years.

Analysts at UBS said in a note to clients that homebuilder stocks are among the names that face appealing investment opportunities in the wake of Labour’s win. The index, which contains many U.K.-focused mid-cap firms, is also tipped to benefit from the election outcome. The average gained in early London trading.