SHARES in housebuilding firms jumped yesterday after HSBC upgraded its view on the stocks, saying the decisive general election result "unleashed pent-up demand" in activity.

Berkeley's share price closed up 2.09 per cent after rising to all-time high yesterday morning as HSBC upgraded the stock from "hold" to "buy". The bank now has "buy" ratings on all nine of the listed housebuilders it covers, and it pointed to Barratt, Redrow, Bellway and Crest Nicholson as its "preferred picks".

Bellway's shares closed up 2.01 per cent yesterday, Redrow was up 2.17 per cent and shares in Crest Nicholson jumped 1.27 per cent. Barratt Developments' stock was up 0.87 per cent.

In the note to investors, analysts said the election result could reverse "the southern England house price erosion that some housebuilders reported in autumn 2019".

It added: "This election has sparked a rally in activity in the UK housing market".

(c) 2020 City A.M., source Newspaper