UK housebuilders: Value or value trap?

Overcoming rising house prices and political challenges

clock • 4 min read

Investors have enjoyed stellar returns from the UK housebuilding sector over the past decade.

The largest eight pure-play housebuilders have delivered a total return of more than 250% over this period, against the FTSE All-Share's 90%. However, the current picture remains mixed for the sector, with concerns over Brexit negotiations, rising inflation and an unfriendly monetary environment. Buyers and owners are now facing rising interest rates for the first time in a generation. The sector has become increasingly politicised, with a clear imbalance in supply, while the levers of demand continue to drive greater pricing pressure. Autumn Budget 2017: Housebuilders fall on Hamm...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Trustpilot