Managers shrug off warnings and top up exposure to housebuilders

Firms rallied after Autumn Statement

Managers are continuing to buy into housebuilding companies across the market spectrum, despite analyst Liberum warning valuations in the sector are "too optimistic".

Earlier this month, the analyst cut its ratings on Barratt, Persimmon and Taylor Wimpey from 'hold' to 'sell' after strong performance for the companies' shares. There are currently four housebuilders in the FTSE 100, of which three have been among the top five performers in the index year to date. They rose further on the back of last week's Autumn Statement after Chancellor George Osborne announced plans to double the annual housing budget to £2bn in a bid to build 400,000 new homes. However, Osborne also announced plans to impose a 3% additional stamp duty tax on those buying a hom...