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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Pharma & Biotech

Tuesday's agenda: Will starter homes boost Bellway?

Bellway and UK inflation will be in the news on Tuesday...

UK property developer Bellway (LON:BWY) puts out final results on Tuesday and, as ever, investors will be keen to hear how the current buoyant mood in the sector is bearing up and what this means for profits.

Interestingly, heavyweight broker Deutsche on Friday honed in on what's called the "Starter Home" initiative, saying this could be "helpful" to the house builders.

There may be more on this contained in Bellway's outlook section on Tuesday.

Deutsche rates eight of the big players either 'buy' or 'hold', with Bellway getting a 'hold' with a target price of 2,326p.

Deutsche highlights that at last week's Tory party conference, David Cameron announced that developers will be given the choice of providing starter homes instead of the current affordable requirement for social rent.

The government is targeting 200,000 starter homes by 2020, it notes.

These are properties available for first time buyers under 40 and will be sold at a 20% discount to market price - capped at £250,000 for UK, £450,000 for London, and purchasers will need to hold the property for at least five years.

On the economic front, UK inflation will be in the news with the release of the consumer and retail price indexes tomorrow.

Inflation was zero in August and in September 2014,month on month inflation was also zero.

Graham Spooner at the Share Centre, said: “Given recent falls in the oil price, it is possible September saw very mild deflation.”

Significant announcements expected

Final: PROACTIS Holdings (LON:PHD), Nanoco Group (LON:NANO), dotDigital Group (LON:DOTD), Bellway (LON:BWY)

Interim: LiDCO Group (LON:LID), Etalon Group (LON:62UM)

Economic: UK – CPI, RPI.

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