Our latest research 21/01/2015
Today we are going to look in the Optimizer at the housing sector which has been making hay ever since it’s near destruction during the financial crisis. The household goods and home construction sector comprises Bovis Homes, Berkeley Group Holdings, Barratt Developments, Persimmon, Bellway, Redrow and Taylor Wimpey. We believe that this sector will benefit from being seen as largely domestic and not heavily linked to the European debate. A difficult stock market between now and the general election should underpin property in general as investors draw strength from the old adage ‘safe as houses’. Additionally, the Government has been working on the housing feel good factor for some time with its help to buy scheme and most recently the restructuring of the stamp duty rates. Additionally, we believe that the current moves in the pension legislation will lead many people into the equity markets but also many will buy property with their pension pots. Initially, we will consider the whole sector and have a look at the fundamentals:
