Homebuilders fall in London, UBS says prices could drop

LONDON (MarketWatch) — Homebuilders fell in London on Wednesday after UBS analysts said that they believe house prices in the U.K. could decline by between 15% to 20%, given the current severe lack of mortgage availability.
“With volume likely to be down by around 30% at least, sector profitabilty could be put under extreme pressure,” the analysts said. They added that, while the sector discount to historic tangible book value may look attractive at 45%, “we see no positive catalyts with risk of capital raisings.” They moved to sell on Bellway , down 5.6%, Redrow , down 8.2%, and Persimmon , down 3.7%. Of other house builders, Taylor Wimpey shares fell 9.7% and Barrett Development shares fell 11.3%.
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Original post by Forextvblog

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