Housebuilders were some of the top risers this morning after big-hitter Berkeley Group said it would meet its £2bn profit target and Redrow posted record results.
At time of writing, Berkeley Group was leading the FTSE 100 risers, as its share price was up 3.72 per cent. Redrow's share price was up 7.26 per cent.
Taylor Wimpey and Barratt Development's share prices were up 1.49 per cent and 1.31 per cent respectively. Persimmon's share price was up 1.74 per cent.
The good news for Berkeley Group comes after its share price plummeted in the aftermath of the Brexit vote, resulting in its ejection from the FTSE 100.
Laith Khalaf, Senior Analyst, Hargreaves Lansdown said: ‘Brexit prompted a blip in trading for Berkeley Group, and ultimately led to the company’s relegation from the FTSE 100. However the house builder also faces other headwinds, in particular recent changes to stamp duty which have put a dent in the London property market.
Despite the challenging environment Berkeley believes it can still make its profit targets, thanks to a strong book of forward sales which are due to deliver £3.25 billion of cash for the company."
Anthony Codling, analyst at Jefferies Bank said that the reservations drop that Berkeley Group announced this morning – down 20 per cent on last year – reflects "a combination of lower product availability and market conditions"
"However site visitors and enquiry levels are similar to last year, demonstrating the strength of demand, even though homebuyers are taking longer to commit," Codling said. "With a nod towards the Autumn statement Berkeley’s statement today suggests that stamp duty for buyers and Infrastructure levies for developers are causing the London housing market to stall."