December 30th 2024 – The share prices of the UK’s leading housing developers continue to consolidate downwards despite near record home prices as measured by Nationwide’s monthly house price index. Barratt Redrow, the UK’s leading developer by revenue now exhibits a negative medium-term trend, reports Trend Intelligence, as its current price of £4.35 sits some 26% lower than its December 2023 highs of around £5.80
Trend’s Analysis (click chart to expand): In our Barratt Redrow chart, Trend Intelligence uses its D* Momentum Indicator to report its green +D* area trading far below Trend’s red -D* line. This is, and has shown over time to be, a negative trend signal.
In addition to our D* indicator, Barratt Redrow PLC currently trades below Trend’s medium-term (yellow) moving average and below our Japanese Cloud indicator, shaded in blue.
The combination of all signals corroborates Trend’s negative medium-term trend rating on Barratt Redrow, as we project continued downward moves in its share price until the trend shows signs of reversing.
Downside Sentiment: The UK’s listed housebuilders are on track to build the fewest new homes for sale in a decade, as planning rules and high mortgage rates hold the market back despite Labour government’s push to increase housing supply. “The listed players are delivering their lowest completions for a decade,” said Aynsley Lammin, analyst at Investec, reports the Financial Times.
Upside Sentiment: Back in October’s Autumn Budget, an additional £3 billion in housing guarantees was made available to help builders access loans from banks and lenders, giving them the confidence they need to deliver a new 1.5 million UK homes, reported HM’s Government.
Authored by Trend Intelligence, London
