UK homebuilders led by Redrow and Taylor Wimpey gained in London after the government's Help to Buy loan programme boosted house prices to their highest in three years.

Taylor Wimpey gained 6.3 per cent, the most since March 20th, after it reported a widening operating margin in the first half. Redrow rose 8.2 per cent after it said first-half profit would be at the upper end of analysts’ estimates.

Residential property values hit an average of £167,984 in June, the highest since August 2010, according to a report yesterday by Halifax.

"Customer confidence is good and transaction levels are picking up," said Pete Refern, chief executive officer of Taylor Wimpey.

“There’s a little bit of price movement out there but it’s sensible – not house-price boom territory.” – Bloomberg