Labour’s promised house-building boom lifts London shares as new UK government takes charge

Demand for steel, timber and skilled workers could put a strain on construction supply chains in Ireland

Investors in the UK believe there could be a rebound in economic growth with a new Labour government. Photo: Getty

Donal O'Donovan

Labour’s landslide electoral victory lifted shares yesterday, including of British housebuilders, who are poised to gain from a pledge to steady the UK economy and ramp up construction, including plans for new towns.

The size of the Labour win and an expectation the incoming government will restore stability after more than a decade of radical policy lurches under the Conservative Party, such as Brexit and the “mini budget crisis” under Liz Truss, helped lift the pound and underpinned UK government bonds.