Housebuilder Stocks Fall in 2016 Despite Rising House Prices

Despite economic headwinds, UK house prices continue to rise in 2016. But housebuilder stocks were quashed amid Brexit fears

Karen Kwok 9 January, 2017 | 4:33PM

UK house prices continued to rise in December, official figures revealed on Monday. UK property prices in the three months to December 2016 were 6.5% higher than in the same period the previous year, according to Halifax house price index. The December data showed the annual rate of growth increased for the second consecutive month, the report added. Prices in the final quarter of the year 2016 were 2.5% higher than in the previous quarter.

Martin Ellis, Halifax’s housing economist said he expected house price strength would continue heading to 2017.

“Slower economic growth, pressure on employment and a squeeze on spending power, together with affordability constraints, are expected to reduce housing demand during 2017. UK house prices should, however, continue to be supported by an ongoing shortage of property for sale, low levels of housebuilding, and exceptionally low interest rates,” said Ellis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barratt Developments PLC784.00 GBX-1.36
Berkeley Group Holdings (The) PLC4,610.00 GBX0.22
MJ Gleeson PLC870.00 GBX0.23
Smart (J) & Co (Contractors) PLC124.50 GBX0.00
Taylor Wimpey PLC190.95 GBX-0.39
Vistry Group PLC1,230.00 GBX0.24

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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