U.K. Homebuilders Gain After August Property Prices JumpPatrick Gower
U.K. homebuilders gained in London trading, led by Barratt Developments Plc, Bovis Homes Group Plc and Taylor Wimpey Plc, after residential property prices in England and Wales rose the most in about three years in August.
The Bloomberg U.K. Homebuilder Index of 10 stocks jumped 3.8 percent, the biggest increase since Aug. 16. Barratt, Bovis, and Taylor Wimpey each gained 4.5 percent. Persimmon Plc, the country’s biggest homebuilder by market value, added 4.2 percent.
Average house prices rose 1.8 percent in August from a year earlier, the most since July 2010, London-based research firm Hometrack Ltd. said in a report today. The market has benefited from a government credit program called the Funding for Lending Scheme. Lending rose by 1.6 billion pounds ($2.5 billion) in the second quarter from the first three months of the year, the Bank of England said today in a report on the program.
The U.K. Homebuilder Index has risen 42 percent this year, while the benchmark FTSE 100 Index has gained 10 percent.