Redrow (RDW)

Sector:

Household Goods

Index:

FTSE 250

687.50p
   
  • Change Today:
    -9.50p
  • 52 Week High: 739.00
  • 52 Week Low: 427.40
  • Currency: UK Pounds
  • Shares Issued: 330.77m
  • Volume: 6,196,680
  • Market Cap: £2,274.05m
  • RiskGrade: 176

Housebuilders rally on report of Help to Buy extension

By Michele Maatouk

Date: Tuesday 28 Jul 2020

LONDON (ShareCast) - (Sharecast News) - Shares of London-listed housebuilders rallied on Tuesday following a report the UK government is planning to extend the Help to Buy scheme.
According to the Financial Times, ministers are drawing up plans to extend the scheme - which allows buyers in England to purchase new-build properties with only a small deposit - beyond its December deadline to prevent buyers losing out because of Covid-19 delays.

The scheme, which was introduced in 2013, offers an equity loan where the government lends first-time buyers and existing homeowners money to buy a newly-built home. The purchase price must be no more than £600,000. Buyers can borrow 20% of the purchase price interest-free for the first five years as long they have a deposit of at least 5%. In London, buyers can borrow as much as 40% of the purchase price.

At 1020 BST, shares of Barratt Developments and Berkeley Group were up 4.9%, while Persimmon and Taylor Wimpey were 4% and 3.8% higher, respectively. Crest Nicholson shares were 3% firmer, while Redrow was 3.5% higher and Bellway was up 4.3%.

Liberum analyst Charlie Campbell pointed out that this would be the fourth time Help to Buy is extended.

"The Homebuyers Federation estimates that the planned taper would reduce scheme use by 40%, although we believe it is more like 33%. Any extension would be positive for the whole sector, but especially those with a higher proportion of sales to movers and at higher price points - like Crest Nicholson and Redrow," he said.

IG analyst Joshua Mahony said: "With the recent stamp duty holiday expected to spark a resurgence in demand, speculation over the potential measures such as a help-to-buy extension adds yet another string to the bulls bow.

"Fears surrounding a potential spike in bankruptcies and job losses remain an issue for banks, yet the housing sector still has the opportunity to enjoy a particularly strong period as previously hesitant movers finally take the plunge thanks to government incentives.

"Alongside the stamp duty holiday, Johnson's promise to relax planning restrictions for new builds, and invest £12 billion in 180,000 affordable homes goes to highlight the boom that could be ahead for the sector."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Redrow Market Data

Currency UK Pounds
Share Price 687.50p
Change Today -9.50p
% Change -1.36 %
52 Week High 739.00
52 Week Low 427.40
Volume 6,196,680
Shares Issued 330.77m
Market Cap £2,274.05m
RiskGrade 176

Redrow Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
83.97% above the market average83.97% above the market average83.97% above the market average83.97% above the market average83.97% above the market average
68.00% above the sector average68.00% above the sector average68.00% above the sector average68.00% above the sector average68.00% above the sector average
Income Not Available
Growth
15.14% above the market average15.14% above the market average15.14% above the market average15.14% above the market average15.14% above the market average
76.00% above the sector average76.00% above the sector average76.00% above the sector average76.00% above the sector average76.00% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 9
Sell 1
Strong Sell 0
Total 11
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

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