UK housebuilders: Value or value trap?

Overcoming rising house prices and political challenges

Investors have enjoyed stellar returns from the UK housebuilding sector over the past decade.

The largest eight pure-play housebuilders have delivered a total return of more than 250% over this period, against the FTSE All-Share's 90%. However, the current picture remains mixed for the sector, with concerns over Brexit negotiations, rising inflation and an unfriendly monetary environment. Buyers and owners are now facing rising interest rates for the first time in a generation. The sector has become increasingly politicised, with a clear imbalance in supply, while the levers of demand continue to drive greater pricing pressure. Autumn Budget 2017: Housebuilders fall on Hamm...