Homebuilders in U.K. Defy Recession in Cameron Rescue: Mortgages

The U.K. is mired in its second recession in three years and business confidence is at a record low. You wouldn’t know it from homebuilder stocks, as an industry index beats the FTSE 100 Index by more than 10 times.

Barratt Developments Plc, the most prolific builder, which once sold a house to Margaret Thatcher, has been the star performer with a 86 percent gain this year. Like competitors, it’s set to profit from government efforts to stimulate growth in a business that’s been hurt by fewer mortgage approvals and falling prices. The plan includes relaxing construction guidelines and making it easier for first-time buyers to take out loans.