Hobson: Is Trouble Looming for Housebuilders?

THE WEEK: Morningstar columnist Rodney Hobson says the good times enjoyed by housebuilder shares could be coming to an end

Rodney Hobson 15 June, 2018 | 2:17PM
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Bellway Homes

As the financial world started to recover from the 2008 collapse, this column argued consistently for several years that every portfolio should include at least one housebuilder – mine has three. Despite the recent slide in shares in the sector, it is increasingly hard to argue that housebuilders are still cheap. We have potentially reached the end of this particular road.

Shares in housebuilders, particularly Barratt Developments (BDEV) which I hold, bounced last week after a broker’s note suggesting that the slide in shares since last October had gone too far. This proved a deadcat bounce when Crest Nicholson (CRST) rang alarm bells this week.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC198.86 GBX1.00Rating
Barratt Developments PLC642.60 GBX-1.26
Bellway PLC3,167.00 GBX-1.58
Berkeley Group Holdings (The) PLC4,248.00 GBX0.26
Crest Nicholson Holdings PLC363.60 GBX0.39
HSBC Holdings PLC434.80 GBX0.01Rating
Lloyds Banking Group PLC48.73 GBX0.84Rating

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.