Property shares enjoy Boris bounce after election win
Housebuilders, estate agents and property agencies are among the top risers on the London Stock Exchange following the Conservative Party’s landslide win in the General Election.
The FTSE 100 finished Friday up by 1.1%, with the FTSE 250 rising by 3.4% and FTSE 350 up 1.5%.
Housebuilders Taylor Wimpey, Persimmon, Barratt Development and Berkeley Group posted double-digit rises, as did agency Savills, which in its half-year results had said political and Brexit-related uncertainties were holding back UK commercial transactions but that if “political clarity emerges, the medium and long-term dynamics of the real estate markets in which we operate remain positive”.
Housebuilders, estate agents and property agencies are among the top risers on the London Stock Exchange following the Conservative Party’s landslide win in the General Election.
The FTSE 100 finished Friday up by 1.1%, with the FTSE 250 rising by 3.4% and FTSE 350 up 1.5%.
Housebuilders Taylor Wimpey, Persimmon, Barratt Development and Berkeley Group posted double-digit rises, as did agency Savills, which in its half-year results had said political and Brexit-related uncertainties were holding back UK commercial transactions but that if “political clarity emerges, the medium and long-term dynamics of the real estate markets in which we operate remain positive”.
Other listed companies to see share price increases include estate agency Foxtons, which in its October trading statement had said “ongoing political uncertainty” was weighing on volumes and prices in the London sales market. Its shares were up by about 5.4%.
See also: What the new government will mean for property
Analysts at investment bank Jefferies said in a note that utilities, banks, builders and retail were the sectors dominating their buy list following the election result, highlighting Persimmon as a standout.
Jefferies’ Glynis Johnson said Persimmon should see “upside potential from Brexit clarity”. The note added: “The Conservative Party targets 300,000 homes per annum by mid-2020s, and… this implies continued support for Help to Buy out to 2023 and potentially beyond. A Conservative majority should provide a clearer runway for less interference in the sector.”
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