ROOF Blog

Bargain-hunters returned to the house building sector yesterday after a leading broker anticipated healthy gains for investors over the next year.

Citigroup laid the foundations for a recovery after turning buyer of Redrow, up 8½p to 131p, Barratt Developments, 6½p higher at 116p and Taylor Wimpey, 1¾p better at 35½p.

The sector has lost a fifth of its value over the past quarter over consumer spending fears for next year, but house prices, mortgage applications and housing transactions data indicate a more positive story, according to Citigroup, which reckoned shares could rebound at least 30 per cent.