Currently standing at 2,460.00p, the company’s share value has risen 0.82 per cent as of 14.19 BST today. Its success seems to be having a knock-on effect on other companies within the housebuilding sector as several other values on the index also rise.
Echoes of Success
Today’s buoyancy seems to be echoing throughout companies within the housebuilding sector with Barratt Developments PLC (LON:BDEV) also enjoying significant gains of 1.14%, Taylor Wimpey PLC (LON:TW) rising by 0.74% and Berkeley group Holdings PLC (LON:BKG) gaining 0.78% since market opening today. The rises see the companies regaining some of the losses the housing sector has suffered this year, following a loss of investor confidence as the UK housing market shows signs of a significant slowdown.
Potential as a long-term Investment
Despite HMRC recently releasing Housing transaction data, which showed the UK housing market as being in a period of stagnation, the rise could be an early indication of a turnaround for the house building sector. A report in Investomania stated: “The FTSE 100 housebuilding sector continues to offer good value for money in my view. Taylor Wimpey and Barratt’s share prices could perform well over the medium term as a result of low interest rates set to be in place over the next few years.”