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House builder share rally continues following election result

Shares in the country’s house builders are continuing to rise after a major rally on Friday following the general election result.

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Picture: Getty
Picture: Getty
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Shares in the country’s house builders are continuing to rise after a major rally on Friday following the general election result #ukhousing

Shares at @Barrattplc @CrestNicholson @BerkeleyGroupUK @bovishomes all see major share prices rises following election result #ukhousing

The FTSE 250, which is mostly made up of UK-focused companies, gained 840 points immediately after it emerged that the Conservatives had won a majority.

Of its constituents, house builders were some of the biggest risers, as investors sought to buy shares in companies that could benefit from more economic certainty.

The gains have continued into this week on the back of a stronger pound and promises of domestic spending by the new government.


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Taylor Wimpey was trading at 199.76p on Monday morning, almost 15% higher than the 173.85p at which its shares closed on Thursday evening.

Similarly, Barratt Developments opened at 764.8p on Monday and continued to gain on its Friday increase, having been just 670p when the markets closed on Thursday.

London-focused developer Berkeley rose more than 2% during trading on Monday morning, to £52.48, a more than 16% increase on its Thursday close price of £45.21.

Crest Nicholson spiked as much as 11.7% on Friday to a high of 447.40p, although it was trading at closer to 434p on Monday – still a significant gain on its pre-election price.

Persimmon also spiked dramatically at the end of last week, and was still trading at a 12.8% premium to its Thursday close price on Monday morning.

Bellway and Bovis were also up more than 10% on their prices on Thursday evening. A number of the companies were trading at five-year highs.

House builders are considered a good bellwether of investor and consumer confidence, and were hit badly after the Brexit referendum and the 2017 election, when the Conservatives failed to win a majority.

In times of prosperity, demand for new homes increases as consumers feel more inclined to move.

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