Sector movers: Homebuilders pace gains
UK house price growth slowed by less than expected in September, with economists apparently sanguine that the sector would be able to avoid large declines in 2017, providing a boost to the largest listed homebuilders.
The rate of house prices increases in Britain slipped from 0.6% month-on-month in August to a 0.3% clip in September, according to the latest survey figures from Nationwide.
However, upwards revisions to prior months' data meant that in comparison to a year ago house price increases only slipped from 5.6% year-on-year to 5.3%, instead of the 5.0% penciled in by economists.
Following the data from Nationwide, Dr. Howard Archer, chief UK+European economist at IHS Global Insight, said house prices were likely to dip by 3% in 2017 as the uncertainty facing the economy mounts.
Yet it was "very possible" that the downside for house prices would be limited markedly by a shortage of homes for sale, Dr. Archer added.
Analysts at Capital Economics were somewhat more upbeat, telling clients they did not expect outright price falls, although their forecast did call for them to ease over coming quarters.
Sentiment towards homebuilders may also have been buttressed by a favourable report out from analysts at HSBC.
The broker raised its target prices for a broad swathe of the UK real estate universe after cutting its cost of equity assumptions for the firms in that space.
HSBC also judged that the risk to capital values was receding in the short-term.
Top performing sectors so far today
Household Goods & Home Construction 16,500.69 +1.46%
Technology Hardware & Equipment 2,109.31 +0.54%
Oil Equipment, Services & Distribution 15,852.50 +0.49%
General Retailers 2,575.63 +0.40%
Food & Drug Retailers 2,838.40 +0.24%
Bottom performing sectors so far today
Industrial Metals & Mining 1,585.64 -5.02%
Mining 12,676.08 -1.68%
Life Insurance 7,001.23 -1.35%
Insurance (non-life) 2,740.61 -1.24%
Gas, Water & Multiutilities 6,673.56 -1.19%