Market wrap: Builders cement gains on surging house prices
Housebuilders were among the FTSE 100’s highest rising stocks today, as the Nationwide House Price Index showed growth so far this year struck its highest rate in six years.
Taylor Wimpey posted the sharpest share price rise of any FTSE 100 constituent, rising by about 7.9% to close at 166.05p. The company said in a trading statement last month that the UK housing market has “recovered well” since the first UK lockdown, adding that “underlying demand continues to be resilient, supported by very low interest rates” and a stamp duty holiday.
Persimmon was also a top FTSE 100 riser, gaining 6.9% at 2,839p.
Housebuilders were among the FTSE 100’s highest rising stocks today, as the Nationwide House Price Index showed growth so far this year struck its highest rate in six years.
Taylor Wimpey posted the sharpest share price rise of any FTSE 100 constituent, rising by about 7.9% to close at 166.05p. The company said in a trading statement last month that the UK housing market has “recovered well” since the first UK lockdown, adding that “underlying demand continues to be resilient, supported by very low interest rates” and a stamp duty holiday.
Persimmon was also a top FTSE 100 riser, gaining 6.9% at 2,839p.
All other housebuilding stocks were trading up, with notable rises for Vistry Group (up 7.7%), Crest Nicholson (7.6%) and Redrow (7.3%).
The Nationwide House Price Index showed annual house price growth as of November stood at 6.5%, its highest rate of growth since January 2015.
Robert Gardner, Nationwide’s chief economist, said that despite the headwinds of slowing economic growth and rising unemployment, “housing market activity has remained robust”.
He added: “Behavioural shifts as a result of Covid-19 may provide support for housing market activity, while the stamp duty holiday will continue to provide a near term boost by bringing purchases forward.
“However, housing market activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect, especially once the stamp duty holiday expires at the end of March.”
The FTSE 100 finished the day at 6,384 points, a rise of 1.9%. The FTSE 250 was up by 2.6% at 19,844.
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