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Outlook Is Bad For Builders Like Barratt.

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From todays independent...

Our view: Sell

Share price: 96.5p (+1.05p)

Housebuilders have had a torrid time of late. The FTSE All-Share Household Goods index, which, curiously, lists leading housebuilders alongside the likes of Reckitt Benckiser, is down more than 7 per cent since 26 April, while Barratt Developments is down more than 20 per cent since the beginning of May.

Viewed in light of Barratt's trading performance the last update was encouraging this seems odd, to say the least. But as the weakness has hit the sector as a whole Persimmon and Taylor Wimpey, for instance, are also down sharply in recent weeks we think the cause is anything but company specific; instead, we'd peg the declines to fears of another housing market slowdown.

Though the European debt crisis is likely to have played a part in the recent slump, the latest house price surveys from the Nationwide and Halifax didn't help matters. The former showed that the pace of growth in prices had relaxed last month, while the latter suggested that prices had fallen for a second consecutive month over May. With the government stepping up moves to cut spending, there are worries that the picture will only get worse in the months ahead. And as if the looming fiscal squeeze wasn't enough, the housing market still faces historically tight credit conditions mortgage approvals remain subdued.

That said, investors will rightly wonder whether the recent pullback has opened up a buying opportunity in Barratt. Net asset values per share stand at above 200p, according to JP Morgan Cazenove, while the stock trades at under 100p. Metrics like that would suggest that it is indeed time to buy, and that is certainly what numerous City analysts seem to think. We disagree. We think market sentiment is far too fragile and Barratt and its peers, through no fault of their own, could continue to weaken in the near term. Sell.

My view is Sell also. Your house that is!

If Dr Bubb was right that the crash will be preceded by plummeting house builders shares then it's crash on! 20% per month enough for you?

Edited by Pent Up FTBer

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From todays independent...

My view is Sell too also. Your house that is!

If Dr Bubb was right that the crash will be preceded by plummeting house builders shares then it's crash on! 20% per month enough for you?

You should have sold builders shares already. If not......geeeeeeeeet ouuuuuuuuuuuuuutathere!

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Barratt: the Lada of the house building world.

Oh c'mon - they're all awful. What, in your opinion makes BDEV worse than say Persimmon?

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Oh c'mon - they're all awful. What, in your opinion makes BDEV worse than say Persimmon?

Yep, they're all cack.

I just recall my friend who bought a Barrat box. He invited me round for a beer(or 12) and showed me the log book for the house (Barrat). It was a 3 bed semi, and said - "don't allow more than 4 people in upstairs rooms". We drank some beer, I leaned on an internal door and it fell through.

Yes, I am 16st (muscle)ish) but it was built like a tree house, 3years in and it was falling to bits.

I'd never buy a new build.

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seriously?

The truth.

It was a 3 bed semi just outside Lincoln.

The manual said no adults numbered 4 or above in any upstairs room was advised.

It was a flimsy house built circa 2002, I think. He bought it new.

Edited by pie-eater

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From todays independent...

My view is Sell also. Your house that is!

If Dr Bubb was right that the crash will be preceded by plummeting house builders shares then it's crash on! 20% per month enough for you?

20% in 10 days??!! That is very weird.

Only Barratt, or the whole sector?

If it is only Barratt, then... due to some inside information?

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From todays independent...

My view is Sell also. Your house that is!

If Dr Bubb was right that the crash will be preceded by plummeting house builders shares then it's crash on! 20% per month enough for you?

20% in 10 days??!! That is very weird.

Only Barratt, or the whole sector?

If it is only Barratt, then... due to some inside information?

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20% in 10 days??!! That is very weird.

Only Barratt, or the whole sector?

If it is only Barratt, then... due to some inside information?

it's 20% down since the beginning of may. The whole sector is down by around 10% over that period with Barratt being the worsed.

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"don't allow more than 4 people in upstairs rooms"

Wonder what would happen? Are the floors made from cracker bread?

You can get planning permission/pass building inspection, yet cannot have more than 4 people in an upstairs room?! :o

It's worse than I thought. What shocks and surprises me is that I keep getting shocked and surprised by this stuff.

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You can get planning permission/pass building inspection, yet cannot have more than 4 people in an upstairs room?! :o

It's worse than I thought. What shocks and surprises me is that I keep getting shocked and surprised by this stuff.

So called town-houses built near me in the past 8 or 9 years - 450K - a friend of a friend bought one and allegedly she came home from work one day to find the first floor kitchen had collapsed into the ground floor bathroom.

Drove past them a fortnight ago and one had the roof off completely with a bunch of boys working on it.

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You can get planning permission/pass building inspection, yet cannot have more than 4 people in an upstairs room?! :o

It's worse than I thought. What shocks and surprises me is that I keep getting shocked and surprised by this stuff.

:lol:

Very good point.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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