Britain’s blue-chip index edged closer to its all-time closing high today, with the FTSE 100 ending the session at 8,864—up 11 points, or 0.13%. That leaves the index just shy of its record close of 8,871.31, set on 3 March.
Gains were led by housebuilders, buoyed by Chancellor Rachel Reeves’ announcement of increased funding for affordable housing, as outlined in her statement earlier today.
Commenting on the market move, AJ Bell’s head of financial analysis, Danni Hewson, said:
“The FTSE 100 has returned over 10% so far this year, a heady performance which might just be the green shoots of a revival in the UK equity market. It’s early days, but a sustained period of strong performance could see investors reappraise the prospects for UK stocks, and create a virtuous circle whereby more money starts to flow into UK plc, boosting performance even further.
“Housebuilders had a rather splendid day, after the Chancellor confirmed £39 billion of investment in affordable and social housing, which she claims is the biggest cash injection in fifty years. This comes on top of existing plans to remove red tape around planning permission to make it easier for housebuilders to develop new homes and flats. There is a clear tailwind for the housebuilding sector and the cherry on top would be a further decline in interest rates so more people can afford to get on the housing ladder.
When the FTSE 100 finally reaches a new record high, it will mark the culmination of a strong two-month rebound in UK stocks. The index had slumped to 7,679 points on 9 April, following a sharp market sell-off triggered by renewed trade tensions.
Since then, markets have steadily recovered, buoyed in part by Donald Trump’s decision to ease some of his tariff threats. That shift helped restore investor confidence through April and May, driving the FTSE 100 closer to its previous record close of 8,871.31.
