Equity analysts at JP Morgan have downgraded FTSE 100 UK housebuilders as the immediate outlook for the UK housing market worsens.
JP Morgan have downgraded their price targets for Taylor Wimpey, Persimmon, Barratt Developments and Berkeley Group Holdings.
Persimmon cut to ‘neutral’ from ‘overweight’ with a new price target of 1,090p, down from 1,600p.
Taylor Wimpey price target cut to 94p from 130p, ‘neutral’ rating maintained.
Barratt Developments price target cut to 390p from 430, ‘neutral’ rating maintained.
Berkeley Group price target cut to 4,400p from 4,800p, JP Morgans remains ‘overweight’.
The downgrades resulted in lower share prices for the four housebuilders on Tuesday.
Recently released data from Nationwide showed the average UK house price rose 0.1% in the month to June, but this was before the Bank of England hiked interest rates by 0.5%.
Average 5-year fixed mortgage rates rose above 6% this week.