Property Stocks Profit from Last Minute Purchases

Property and housebuilder stocks have seen share price losses year to date, but profits are up thanks to a rush to buy before a tax hike in April

Karen Kwok 12 May, 2016 | 10:38AM

Profits of property service and house builder companies are up – thanks to a spike in activity ahead of the introduction of the new stamp duty levy on buy-to-let purchases and second homes introduced last month.

Property adviser Savills (SVS) on Wednesday revealed the UK prime residential market has performed ahead of its expectations, sending its shares up 2.06% to 766.50p the end of the trading day on Wednesday. However the stock has lost 11.3% year to date.

Consultancy and property management of the company have performed well, Savills added, with particular strength in the UK and Asia, while Savills’s Investment Management unit has grown in line with forecasts.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barratt Developments PLC384.30 GBP0.00
Merian UK Smaller Companies A GBP Acc3.81 GBP-0.98
Savills PLC745.00 GBP0.00
Taylor Wimpey PLC101.50 GBP0.00

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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