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Shares in U.K. Homebuilders Slide After Rightmove Predicts Home Price Slowdown

Published 20/06/2022, 12:50
Updated 20/06/2022, 12:50
© Reuters.

By Scott Kanowsky

Investing.com -- Shares in U.K. real estate companies fell on Monday, after new data from the property website Rightmove (OTC:RTMVY) suggested that the pace of house price growth will slow to 5% from 9.7% in the coming months.

In its latest house price index, Rightmove warned a string of interest rate increases by the Bank of England will partly eat into consumer demand and weigh on prices.

"Entering the second half of the year, we anticipate some further slowdown in the pace of price rises, particularly given the worsening affordability challenges that people are facing," said Tim Bannister, Director of Property Science at Rightmove.

Growth in the national average asking price for properties coming to market also slowed in June, despite touching a fifth straight record of £368,614.

U.K. homebuilders Barratt Developments (LON:BDEV), Berkeley Group (OTC:BKGFY) Holdings PLC (LON:BKGH), Persimmon (LON:PSN) and Travis Perkins (LON:TPK), all saw shares slide to near the bottom of Europe's STOXX 600, following the report.

Latest comments

The UK doesn’t have a housing shortage, It has to many wealthy landlords buying a second house with the intent to rent it out. It’s a good thing that Brits have mainly taken care of this issue through Brexit. In 2-3 years you will see an over supply of houses on the market, and this recession will hurry things along. Home builder stocks are way over exagerated in price, as are houses.
My second thought on this, and I hope I am wrong here, is that, many of these landlords and would be landlords aren’t as rich and this has all been done through leverage or remortgaging curent properties, which would spell a debt crisiss on the horizon.
are you stuck renting and not able to afford a house as your comments sound like wishful thinking to me. The UK has a housing shortage. it's a well known fact. Keep saving for that deposit would be my suggestion.
The government needs to revise building houses, as we need more land to grow crops
Price growth may slow down, however the UK still has a housing shortage and housebuilding will continue.
no your wrong - cosmin say so.
Must be then !
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