UK House Builders Slip as Falling Prices, Climbing Rates Hit Sector

UK House Builders Slip as Falling Prices, Climbing Rates Hit Sector

0911 GMT - The big move higher in U.K. interest rates continues to have a dampening effect on the housing market, with a fourth straight month of annual house price declines AJ Bell says, citing Halifax data. With mortgages becoming less affordable it is proving increasingly difficult for people to get a leg up on the property ladder or even join the ladder in the first place, AJ Bell Investment Director Russ Mould says in a market comment. "House builder Taylor Wimpey was among the top fallers on the FTSE 100 this morning. The sector faces a very different environment today after years of strong property prices, cheap mortgages and state support for first-time buyers," Mould says. Taylor Wimpey, Barratt Developments and Persimmon are all down 1.2%, 0.6% and 1.1% at 117.55 pence, 455.4 pence and 1,134.0 pence respectively. ([e-mail])

COMPANIES NEWS:

Clarkson's Pretax Profit, Revenue Rise on Strong Broking Segment Performance

Clarkson PLC said pretax profit rose for the first half, when revenue was boosted by a strong performance at the broking segment, and that the board's expectations for the year are unchanged.

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Christie Group Sees 2023 Performance Below Views

Christie Group expects its full-year performance to be materially below previous expectations due to delays in exchanging contracts and changes to the timing and outcome of some significant portfolio assignments.

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PageGroup Backs Guidance After Profit Fell

PageGroup backed its operating profit guidance for the year as it reported a fall in pretax profit for the first half with temporary recruitment outperforming permanent recruitment given the uncertain macroeconomic backdrop.

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Cordel Sees 2023 In Line With Views, With Revenue Growing

Cordel Group expects to report results 2023 in line with market expectations, with revenue seen growing by a almost a third on-year.

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LSL Property Services Profits to Be Below Views on Challenging Market Conditions

LSL Property Services said that profits in the second half and full year will be below the board's expectations as they were hurt by recent change in mortgage market conditions.

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Carr's Group CEO Peter Page to Step Down at AGM in January

Carr's Group said Chief Executive Officer Peter Page plans to step down at next year's annual general meeting and that it plans to start the search for his replacement.

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Deepverge Sells Subsidiary Glanaco for EUR1

Deepverge sold its Ireland-based subsidiary Glanaco to its current management and previous owners for 1 euro ($1.1) as part of its move to reduce costs.

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Fulcrum Metals Agrees to Buy Canadian Gold Project for C$800,000

Fulcrum Metals said on Monday that it has agreed to buy a 100% interest in Ontario's Tully gold project from 1911 Gold Corp. for 800,000 Canadian dollars ($598,287) in cash.

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Marlowe Regularly Reviews Business Units But No Decisions Made

Marlowe said that it regularly reviews its business units to maximize shareholder value but hasn't made any specific decision on any of them.

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Pan African Resources Meets Gold Production Guidance

Pan African Resources met its revised gold production guidance for fiscal 2023 and expects increased production at its Barberton underground mines as continuous operations and other improvements have helped production, it said Monday.

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Etalon Group Sales Rose On Regional Push

Etalon Group's first-half new contract sales rose on its expanded affordable housing offer in regional markets.

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Vanquis Banking CFO Neeraj Kapur Steps Down

Vanquis Banking Group's Neeraj Kapur stepped down as chief financial officer with immediate effect for personal reasons.

MARKET TALK:

PageGroup's Attractive Valuation Outweighs Near-Term Earnings Weakness

0857 GMT - Buying PageGroup stock might feel uncomfortable given pronounced cyclical weakness but its current valuation outweighs the near-term earnings debate, Citi says in a note. The U.K. recruitment company posted lower pretax profit for the first half of the year and lowered its special dividend, reflecting its reduced profitability on higher costs. "Staffers have historically moved early and then outperformed as bad news peaks. When the current macro storm abates, shares should correct toward normalized earnings-based valuations," analyst Marc Van'T Sant writes. Citi rates the stock buy. Shares, which are down 2.4% year to date, edge down 0.4% at 450.2 pence. ([e-mail])

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UK House Prices Slip in July But Market Surprisingly Stable

0840 GMT - The annual average U.K. house price decline continues in July as the high cost of living and numerous rate rises hit how much buyers are willing and able to pay for their next home, OnTheMarket.com says, citing new Halifax data. That said, given all the economic uncertainty, it is remarkable how relatively stable the market appears to be following a period of unprecedented house price growth fuelled by lack of supply and demand, OnTheMarket Chief Executive Jason Tebb says in a market comment. "There are committed buyers who wish to move but they are also increasingly price sensitive. Motivated sellers would be wise to seek advice from an experienced agent who understands the market in their area, ensuring they price sensibly to achieve a timely sale," Tebb says. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

08-07-23 0530ET