Managers back UK housebuilders despite threat of recession in UK

Managers believe sensible business plans will support housebuilders and offer greater scope to grow profits than government's stimulus package.

Managers are backing economically sensitive UK housebuilders despite an ‘underwhelming’ government stimulus package for the sector and the threat of impending recession. The government is set to introduce mortgage guarantees for up to 100,000 new homes, and will create a £400m fund to kickstart stalled developments and release land for residential use. The aim is to breathe new life into a stagnant market which has slowed in line with economic growth, hampered by banks’ refusal to lend on reasonable terms. Share price falls Housebuilders, which make up an estimated 20% of the e...