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UK housebuilders rally on new first-time buyer homes scheme

RBC Capital Markets said firms with the most exposure to southern and south-eastern regions and higher liquidity are likely to outperform on a relative basis.

Reported · Written up by our desk · Residential

UK housebuilder stocks rose sharply after a new homes scheme for first-time buyers was introduced, with the Guardian Business describing the move as a major catalyst for the sector.

Anthony Codling, managing director at broker RBC Capital Markets, said the stocks most exposed to the south and south east, including Crest Nicholson, and the more liquid names, including Barratt Redrow, Persimmon and Taylor Wimpey, are expected to outperform on a relative basis.

Codling added that less-exposed operators, including Vistry, and builders with homes likely to be priced above the scheme’s Your First Home price cap, including Berkeley, could lag versus peers.

The coverage also noted that shares in building material suppliers were participating in the move.

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