Citi is staying cautious on the outlook for the UK's housebuilding sector for 2023.
In a note, the US bank's analysts cited concerns about weak site absorption and affordability constraints which they believe weigh on investor sentiment.
The Citi analysts expect conditions to improve in the second half of the year, anticipating normalisation in mortgage rates and greater visibility of market conditions to boost sentiment and improve prospects for cash returns and share buybacks.
The analysts noted that they remain selective on the sector at this stage, and said they would seek opportunities where the significant recession risks are already priced in, and, where there is scope for higher cash returns or share buybacks.