Lockdown Deters Investors but not House Buyers

The Week: Housebuilders are still selling houses, so why are investors still selling shares, asks Morningstar columnist Rodney Hobson?

Rodney Hobson 10 July, 2020 | 9:47AM
Facebook Twitter LinkedIn

The Week

Paying back government furlough cash is a double bonus: it creates goodwill and it sends a signal that a company’s finances are in better health than they might have been. Barratt Developments (BDEV) has joined a remarkably long list of companies taking this path, one that amounts to a good deal more than virtue signalling.

Home completions have fallen by nearly 30% at Barratt, the UK’s largest housebuilder, though perhaps the miracle is that 12,604 homes were completed in the 12 months to the end of June, a period that covered the whole of lockdown. Equally surprising is that average prices actually edged up compared with the previous 12 months.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barratt Developments PLC9.12 USD4.71
First Derivatives PLC2,155.00 GBX1.89
FirstGroup PLC89.50 GBX-3.35
Persimmon PLC37.79 USD6.00
Vistry Group PLC16.45 USD-6.43

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.