Housebuilders boosted by buoyant home sales
Britain’s housebuilders got a boost after home purchases in the UK bounced back following the end of the Government’s stamp duty holiday.
Data from HM revenue & Customs showed that there were 96,290 house sales in november, 24.3pc higher than in October when the tax break closed.
However, that was still 16.4pc lower than november last year.
anthony Codling, chief executive of property data site twindig, was ‘surprised’, noting the figure was only 3.4pc lower than the prepandemic average of 99,642.
‘it seems that at first glance, the UK housing market is in good health, perhaps it is doubled jabbed and boosted?’ Codling said. ‘the bounce-back implies there is more to the underlying level of transactions than the impact of stamp duty holidays.
‘the pandemic is having a significant impact on where and how we choose to live, and where and how we choose to work… and it seems that the race for space is not over just yet.’ Major housebuilders benefited, with Barratt up 3.1pc, or 21.8p, to 724.8p while Taylor Wimpey rose 3.5pc, or 5.75p, to 169.75p. Berkeley added 2.6pc, or 122p, to 4763p and Persimmon climbed by 2.2pc, or 60p, to 2754p.
Mid-cap builders also rose, with Redrow jumping 2.1pc, or 14p, to 684.4p, Crest Nicholson ascending 3.4pc, or 11.8p, to 356.2p, Bellway gaining 1.9pc, or 60p, at 3234p and Vistry Group bouncing 3.3pc, or 36.5p, higher to 1146p.
the FTSE 100 jumped 1.38pc, or 99.38 points, to 7297.41 while the FTSE 250 added 1.20pc, or 270.42 points, to 22820.30.
Markets rebounded strongly from Monday’s rout after Boris Johnson held off on introducing new lockdown restrictions.
sentiment was also boosted by a £1bn support package unveiled by Chancellor rishi sunak to help businesses ride out Omicron.
receding fears of strict lockdowns lifted retailers, with Primark owner AB Foods up 4.5pc, or 85p, to 1997p while Next bounced 1.3pc, or 100p, to 7878p.
the support also boosted hospitality, with publican Wetherspoons up 3.1pc, or 26.5p, to 871.5p and Wagamama owner Restaurant Group rising 6.3pc, or 5.1p to 86p. However, the lack of stricter measures appeared to hit some lockdown winners, with grocery delivery giant Ocado slipping 2.7pc, or 4.5p, to 1636.5p.
Meanwhile, the potential scuppering of a massive Us infrastructure plan worth trillions of dollars following opposition from Democratic senator Joe Manchin knocked construction equipment hire firm Ashtead, which dropped 0.1pc, or 8p, to 5900p.
JD Sports jumped 4pc, or 8p, to 207.2p on the back of strong results from nike in the Us which beat expectations amid a rebound in demand for its trainers.
Miner BHP rose 2.3pc, or 49.5p, to 2195.5p after winning approval from regulators to merge its corporate structure as part of its move out of the UK to australia.
Astrazeneca delivered more positive news as its ultomiris drug was accepted for priority review by the Us Food and Drug administration. it is designed to help treat generalised myasthenia gravis, an auto-immune disease that weakens the muscles. astra rose 1.4pc, or 117p, to 6808p.
Rank Group, the owner of Mecca Bingo, rose 3.1pc, or 4.4p, to 145.6p after poaching its new chief financial officer from estate agent Foxtons. richard Harris will replace
simon Hay in May. Foxtons rose 2pc, or 0.75p, to 39p.
Meanwhile, FtsE 250 insurer Hiscox said new chief financial officer, Paul Cooper, will join from asset manager M&G. Hiscox was up 1.3pc, or 10.6p, to 852.6p while M&G rose 2.4pc, or 4.5p, to 192p.