Housebuilders rally as Boris Johnson said to consider slashing stamp duty

London-listed housebuilders saw their shares rally on Friday as Tory leadership frontrunner Boris Johnson was said to be planning to slash stamp duty in the event of a no-deal Brexit budget.

Berkeley Group, Persimmon, Taylor Wimpey, Barratt Developments and Crest Nicholson all gained as Johnson was reported to be preparing an emergency budget for a no-deal Brexit, which includes an overhaul of stamp duty.

According to The Times, he is looking at abolishing the levy on homes worth less than £500,000. As it stands, only the first £125,000 of a property is exempt from stamp duty.

Joshua Mahony, senior market analyst at IG, said: "Coming not long after we heard rumours that Jeremy Corbyn was considering applying capital gains tax on all residential sales, it is evident that the housebuilding sector would be materially affected by the outcome of the next general election.

"However, while we are seeing the sector gain ground in anticipation of a potentially stimulative cut in stamp duty, we must remember that the no-deal Brexit remains something that parliament has no majority to approve."

CMC Markets analyst David Madden said: "The housebuilders have cooled in terms of share price movement in the past year or two as there is a belief that the boom times are over for now, and the announcement from Mr Johnson prompted some buying. "