Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

Bloomberg: U K Builders Follow U S Builders Down

Recommended Posts

http://www.bloomberg.com/apps/news?pid=206...9Q&refer=uk

Barratt, U.K. Homebuilders May Fall Further on Higher Rates

Aug. 15 (Bloomberg)
-- Shares of nine of the 10 largest U.K. homebuilders have fallen since the Bank of England unexpectedly raised interest rates this month. The decline may have further to go if U.S. housing companies are any indication.
``With the first rate increase, the house-building sector comes off dramatically,'' said Colin Morton, a fund manager at BWD Rensburg Ltd., which oversees $2 billion in Leeds. ``
It's the first reaction and the same has happened in the U.S
.'' He owns only one homebuilder, Bovis Homes Group Plc.
Newcastle upon Tyne-based Barratt Developments Plc, the biggest U.K. homebuilder by number of houses sold, has lost 6.6 percent since Aug. 3, when the BOE lifted its key interest rate to 4.75 percent in the first increase in two years. London-based George Wimpey Plc, the second-biggest by that measure, is down 4.3 percent. Berkeley Group Holdings Plc, up 1.2 percent, is the only stock to gain among the 10 biggest companies.

UK following US down with an approximate 6 month lag. Builders reflect what is going on in the marketplace. Today's "up up and away" report from the EAs (RICS) flies in the face of the very recent government and FT reports showing a slowing market. The builders are a key indicator and they are not doing well.

Share this post


Link to post
Share on other sites
Guest wrongmove

UK following US down with an approximate 6 month lag. Builders reflect what is going on in the marketplace. Today's "up up and away" report from the EAs (RICS) flies in the face of the very recent government and FT reports showing a slowing market. The builders are a key indicator and they are not doing well.

Well let's hope so. Builders have risen a great deal over the last few years. Many called to top in housing stocks, especially Countrywide, far too early and it cost them dear.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.