UK housebuilders encouraged by talk of City rescue

The UK's major housebuilders began a stock market fightback today amid speculation of a City bail-out for the battered sector.

Weekend reports of a funding move to put their finances on a firmer footing, organised by investment bank UBS, sent shares higher. Barratt Developments - whose stock slumped 39% last week - gained more than 14% in the FTSE 250 Index.