Sector movers: Housing stocks rise, insurers fall after Budget

Household goods and home construction stocks were making gains on Wednesday in the aftermath of George Osborne's 2014 Budget, in which he unveiled a number of stimulus measures to boost activity in the housing market.However, the life insurance sector was trading in the red as investors reacted negatively to a shake-up of the pensions market.As expected, the Chancellor announced that the government is extending the 'Help to Buy' mortgage guarantee programme from 2016 to 2020 for new builds. He said that new homes will be built in the South East "where the pressure is greatest", including a new Garden City in Ebbsfleet."Taken all together, the housing policies I announce today will support over 200,000 new homes for families. We're getting Britain building," Osborne said.Stephen Smith, Director, Mortgage Club & Housing at Legal & General Mortgage Club, said that the measures announced today are "welcome" and a "vital factor in ensuring a healthy recovery of the housing market". He added: "Today's initiative is what is required to stimulate much needed new home building to keep supply in line with demand. Without it, house prices will increase as demand outstrips supply and the market will stagnate."Housing stocks including Redrow, Crest Nicholson, Persimmon, Bovis Homes and Barratt Developments were all performing well.Heading the other way were insurers Aviva, Legal & General and Aviva after Osborne introduced "flexibilities" into the annuities market. He said that most people currently have little option but to take out an annuity, even though annuity rates have fallen by a half over the last 15 years."The tax rules around these pensions are a manifestation of a patronising view that pensioners can't be trusted with their own pension pots," the Chancellor said.Changes announced today will stop forcing savers to buy an annuity at retirement by removing all remaining tax restrictions on how pensioners have access to their pension pots. "Pensioners will have complete freedom to draw down as much or as little of their pension pot as they want, anytime they want. No caps. No drawdown limits," he said.Top performing sectors so far todayIndustrial Metals & Mining 899.08 +3.47%Aerospace and Defence 4,907.59 +1.77%Software & Computer Services 1,204.98 +1.68%Household Goods & Home Construction 11,738.78 +1.58%Chemicals 10,783.31 +1.33%Bottom performing sectors so far todayLife Insurance 6,964.07 -3.67%Mining 15,963.46 -2.31%General Industrials 4,248.21 -1.12%Insurance (non-life) 1,864.62 -0.96%Travel & Leisure 7,454.83 -0.85%BC