Housebuilders were "turbo-charged" by the government's Help to Buy Scheme and become one of the best-performing sectors last year. Now planning policy and buying up land will give the sector another boost, argues Smith & Williamson's Mark Boucher.
One of the most difficult investment acts is to buy a sector that has already performed extremely well, and so it is with the UK housebuilding sector. Its main components were up between 40%-75% to 2 December 2012 according to Bloomberg, and were one of the best performing sectors last year. However, due to strong earnings growth across the house builders, the sector remains close to the same P/E valuation as it was in January 2013. There are a number of positive factors that have produced an ever improving backdrop for the UK quoted housebuilding sector. The most important element is...
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