SHARES in York housebuilder Persimmon rose 23 pence to 1,033 pence yesterday.

Shares rose 38.5 pence following the Budget announcement on Wednesday of a Help To Buy initiative extending the reach of current housing schemes.

Mike Farley, chief executive of Persimmon, said housebuilding had a key role in economic recovery and said the initiative gave the industry the long term certainty it needed.

“The expanded Help To Buy scheme will now give thousands of existing homeowners a much-needed helping-hand up the housing ladder, as well as continuing the welcome support to first time buyers.

“Help To Buy will be particularly helpful to capital constrained small and medium-sized housebuilders, providing a boost to sales and build rates, which should be good news for jobs and economic growth.”

However, the expansion of the Help To Buy scheme aimed at helping first-time buyers on to the housing ladder will end up subsidising mortgages for millionaires to purchase second homes, shadow chancellor Ed Balls has claimed.

He said Chancellor George Osborne’s new policy had been thrown in to “absolute confusion and chaos” after it emerged it will not exclude buyers looking to purchase a second home worth up to £600,000.