Shares in house builders made tentative gains this morning after Goldman Sachs said it could see some green shoots in the embattled sector.
The small signs of recovery comes in the form of increasing mortgage volumes over the first half of the year, albeit from very low levels, which the broker said had driven share price rallies in the past.
However, Goldman did caution that the sector is not out of the woods yet, as it expects house prices to fall further over the coming year. That said, it believes share prices will stabilise overall in the next few months and subsequently upgraded Barratt Developments, up 6p to 124.25p, to buy from neutral, noting that it was trading at less than a third of its book value.
The Times, Daily Telegraph