Iran war causes ‘uncertainty’ for Labour housebuilding targets
The Iran war has ‘dashed’ hopes of a recovery in the housebuilding sector, according to City analysts, dealing a further blow to Labour’s hopes of seeing 1.5m new homes built in this Parliament.
A report by investment bank Investec warns the ‘outlook remains uncertain’, with builders facing ‘higher mortgage rates, higher energy costs and indications that sentiment in the wider housing market has already been impacted’.
The research – entitled ‘Housebuilders: Hopes of 2026 recovery dashed and uncertainty high’ – notes that shares in the sector have ‘already fallen substantially to price in significant risk’.
Watching brief: Chancellor Rachel Reeves looks at a bricklayer during a visit to a building site
Barratt Redrow shares are down around 30 per cent this year while Persimmon is 16 per cent lower and Taylor Wimpey has dropped more than 20 per cent.
Barratt last week scaled back its land-buying plans after Berkeley Group put its purchases on hold altogether.
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