Housebuilders climbed on Friday after JPMorgan analysts said the sector could be set for a recovery, prompting a flurry of upgrades.
Taylor Wimpey PLC gained 3.9%, while Persimmon, Barratt Developments and Vistry climbed 2.3%, 1.6% and 1.5% respectively, as all were upgraded to ‘overweight’ ratings.
JPMorgan said newsflow around the UK’s looming general election was likely to boost the sector, with housing expected to be a key focus among campaigning parties.
“Irrespective of which political party wins the upcoming election, we expect the government to increasingly focus on boosting affordable housing and reforming the planning system,” analysts noted.
Cuts to base interest would likely aid a recovery into 2025, analysts added, after high rates have hit the sector over the last year.
Bellway PLC and Berkeley Group Holdings PLC also climbed 0.6% and 0.4% respectively on the optimistic comments, despite being downgraded to ‘neutral’ by JPMorgan.
Crest Nicholson, which was kept at ‘underweight’ by JPMorgan, gained 1.2%.