UK housebuilders, such as Barratt Redrow PLC (LSE:BTRW), Taylor Wimpey PLC (LSE:TW.) and Persimmon PLC (LSE:PSN), are expected to continue their recent resurgence, according to Deutsche Bank.
After months underperforming the rest of the market, the UK housebuilding sector has performed well during the recent Trump tariff turmoil, analyst Chris Millington said in a note to clients.
The sector sub-index is up around 12% since the start of March, compared to a small decline for the FTSE All-Share.
"The biggest driver of this," the analyst suggested, "is moderating forward rate expectations and the domestic nature of the sector.
"We think this uplift/outperformance can continue, based on indications that the new build housing market is recovering, supported by lower mortgage rates, which we think is raising the spectre of earnings upgrades, after several years of downgrades."
Furthermore, the analyst said current share prices and valuations for the sector are "low versus recent history, particularly when viewed against forward rate expectations".
Reports suggested a mini mortgage price war has started to break out among lenders in recent weeks, with all the big UK banks and building societies now offering some fixed-rate mortgage deals with interest rates below 4%, following a period when the Bank of England was cutting rates but borrowing prices were going up.