The builders provided the market’s main excitement with a triple-dose of good news lifting the sector.
If demand for new build housing is sentiment-driven, then the mood recently has been dominated by Brexit.
READ: Help to Buy underpinning new-build boom, says Berenberg, as it urges investors to plough into housebuilders
So, the UK seemingly stepping away from a no-deal departure from the EU provided some support for listed groups such as Barratt Developments PLC (LON:BDEV), up 1.9%, and Taylor Wimpey PLC (LON:TW.), ahead 1.5%.
A note from HSBC, meanwhile, took a good look at the longer-term prospects of the quoted builders.
There was a raft of price target upgrades, while Persimmon PLC (LON:PSN), up 1.9%, and Bovis Homes PLC (LON:BVS), up 3.3%, were moved to ‘buy’ recommendations from ‘hold’ by the bank.
“We now see a lighter than we initially expected correction in southern England in 2019 for new house prices at 2.5-5%, based on recent evidence of a shift to house ownership from renting for 35-44-year-olds, which is also evident in housebuilders’ resilient sales rates, despite the Brexit consumer gloom,” HSBC told clients.
“We expect sustained low mortgage rates and the government Help-To-Buy equity loan scheme to maintain the market share gains of new homes.”
Finally, Crest Nicholson PLC (LON:CRST) provided a tonic as it said it had already secured 50% of its sales for the year.
The stock advanced 6.8% with the City doubly cheered by the news it had poached new boss Peter Truscott from rival Galliford Try plc (LON:GFRD).
Crest has also pressed the reset button on its strategy to focuses on shareholder returns by prioritising cash flow and dividends.