Business

FTSE 100 rises as Spending Review boosts housebuilders

City traders Image copyright Getty Images

(Close) London markets ended up 60 points with shares in house builders leading the gainers and mining companies dominating the losers.

Housing companies soared on the news that the UK chancellor planned to double the housing budget.

But their shares then fell back as he also announced plans to raise some property taxes.

Shares in Taylor Wimpey were the best performer on the FTSE 100 index, rising 3.8%.

Barratt Developments rose the same amount. Keith Bowman, analyst at Hargreaves Lansdown, said: "Osborne has given with one hand and taken away with the other,"

"He doubled the housing budget, which is a good news and a reason for housebuilders being strong in the first place, but at the same time he has added a new rate of stamp duty for buy-to-let investors."

At the close the FTSE 100 was up 60.41 points at 6,337.64.

Mining giant Anglo American was the biggest faller on the index, dropping 7.7% after HSBC advised investors to reduce their holdings in the stock.

Glencore fell 3.62% and BHP Billiton closed down 2.55%.

In the FTSE 250, shares in Thomas Cook jumped 10.65% after the travel company reported its first annual pre-tax profit for five years.

Despite terror attacks in Egypt and Paris the company also said bookings in the new financial year had got "off to a good start" with "encouraging trading" for both winter 2015-16 and summer 2016.

On the currency markets, the pound gained 0.15% against the dollar to $1.5150, and rose 0.35% against the euro to €1.4270.