Housebuilders set for growth after fog of Brexit clears | Business

Hopes that increased political certainty will boost housing activity in Britain sent building stocks into record territory yesterday. Analysts at HSBC hailed a “more constructive” outlook for the sector as they lifted profit forecasts and target prices for some of its largest companies.

December’s general election, which delivered Boris Johnson an unexpectedly strong Conservative majority, in turn dispersing much of the Brexit fog, “sparked a rally in activity in the UK housing market”, they told clients. “We expect this to lead to a reversal of the southern England house price erosion that some housebuilders reported in autumn 2019.” The bank has abandoned its bearish prediction of a market correction in the South. Having said that prices would drop by as much as 5 per cent