Deutsche Bank have downgraded a swathe of UK housebuilders as it suggests a lot of the positive news around the UK property market is priced into shares.
Enjoying mildly improving sentiment around the UK property market, London-listed housebuilders have staged a remarkable rally from last year’s lows.
However, analysts at Deutsche Bank now feel most of the good news is priced into the sector and have downgraded Barratt Developments, Redrow, Taylor Wimpey, Crest Nicholson Holdings and Persimmon.
All were cut to a hold from buy, apart from Persimmon which was cut to a sell.
Persimmon shares were down 2.8% at the time of writing on Monday.
Housebuilding shares fell heavily during the early stages of 2022 before bargain hunters stepped in to pick up the beaten down stocks on hopes the UK economic doomsday scenario would fail to transpire.
Barrett’s recently reported results for 2022 and said forward sales were dramatically lower than at the same point last year.