With divi yields of 7%, can UK investors afford to ignore housebuilders?

Bowie, Brexit and Bake Off - 2016 has already delivered a number of shocks. Fretful investors could therefore be forgiven for seeking investments that are as safe as houses.

Yet investing in the companies that build them has not been a winning strategy this year. The aftermath of the EU referendum saw a dramatic bifurcation in the UK equity market. Defensives and US dollar earners rallied; domestic-oriented stocks plummeted. In the two weeks after the vote, the consumer staples sector outperformed housebuilders by around 50%. While the gap has since narrowed, the share prices of companies like Bellway, Crest Nicholson and Taylor Wimpey remain 20% below pre-referendum levels. The near-term outlook for housebuilders is uncertain. Recent results from comp...