From Morningstar: 2025-05-07 12:35:00

UK housebuilders have seen a 16-25% rally in the past month due to lenders lowering mortgage rates below the Bank of England’s 4.5% policy rate, anticipating future rate cuts. The UK government’s budget halted the positive momentum in 2024, but sales rates for housebuilders remain strong, with Persimmon being the top pick at a 40% discount to fair value estimate.

Investors are looking ahead to the Monetary Policy Committee meeting on May 8, where a second cut to the BOE policy rate is expected. If the cut is larger than 25 basis points, it could further boost shares in the short term. All stocks in the industry are trading in 4-star or 5-star territory, presenting value across the sector.



Read more at Morningstar: Despite Recent Rally, UK Housebuilder Stocks Remain…