Proactive Investors - Housebuilding and real estate shares topped the FTSE 100 and FTSE 250 leaderboards on Wednesday after UK inflation eased.
Leading the blue chips, Persimmon PLC (LON:PSN) was up 6.5% in morning trading, followed by Barratt Developments (LON:BDEV) PLC and Taylor Wimpey PLC (LON:TW), both up more than 5%, with Berkeley Group Holdings PLC (LON:BKGH) rising 3.7%.
Property developers Segro PLC (LON:SGRO) and Land Securities Group PLC were both over 6% higher too.
On the mid-cap index, London property developers Great Portland Estates and Derwent London PLC (LON:DLN) are sat atop the list, up 8.7% and 7.6%, with British Land Co PLC not far behind. Tritax Big Box REIT PLC, Warehouse REIT PLC, Tritax Eurobox PLC and Shaftesbury Capital PLC are also up there.
Next, there are housebuilders Redrow (LON:RDW) PLC, Crest Nicholson (LON:CRST) Holdings PLC and Vistry Group (LON:VTYV) PLC, all up between 6% and 7%.
Build-to-rent developer Grainger Plc (LON:GRI) is up 6%.
The housebuilding sector is trading at a one-month high, pointed out market analyst Neil Wilson at Finalto, “as yields come back down and the market reprices more sensibly for how high the Bank of England goes with rates".
He says the sector “was too oversold as market was too bearish on high the BoE would need to go".
Danni Hewson, head of financial analysis at AJ Bell, said: “Investors are taking the view that if inflation is on a sustained downward path, then the Bank of England might be less eager to keep pushing up interest rates.
“The market is desperate for that pivot moment where central banks call the end to the current rate rise cycle.