UK HOUSEBUILDERS are set to shed light on the state of the fragile property market amid a number of key updates from firms this week.

Shareholders are braced to see accounts for Persimmon, Berkeley and Vistry all show a fall in sales numbers after higher interest rates weighed heavily on activity last year.

Interest rates rose to a 15-year high of 5.25 per cent last year and millions of homeowners have been faced with higher mortgage rates as a result.

Housing firm shares were knocked as a consequence, but saw a slight renewal of fortunes over the past six months, buoyed by improved interest rate expectations and Barratt Homes' bumper deal to buy rival Redrow.

However, investors in the sector have seen the improvement wilt more recently and will therefore be looking out for positive guidance this week.

FTSE 100 firm Persimmon will reveal its latest trading data in a statement on Tuesday. The company already told investors earlier this year that sales in 2023 were due to have dropped by around 16 per cent, as it blamed the jump in interest rates and the end of the Help to Buy scheme.

On Thursday, rival Vistry is also expected to reveal a revenue drop due to the sluggish property market.

The Kent-based firm is expected to report revenues of around £4bn for the past year, according to analysts, down from £4.5bn a year earlier.

The week will finish with a trading update from upmarket property firm Berkeley Group.

Berkeley has also witnessed a slump in sale numbers, with a 14.2 per cent fall in deals over the first half of its financial year. However, revenues were broadly flat as its Londonfocused strategy proved beneficial by increasing its average sale price.

PA

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