Sumary of Opportunity Knocks. Why Bank of America is Bullish on U.K. Home Builders.:
- Houses and residential apartments in Sheffield, northern England on May 14, 2020. AFP via Getty Images The backdrop just gets better and better for U.K. home builders.
- That is according to analysts at Bank of America, who have turned more bullish on the sector.
- ” “The continuing positive demand backdrop combined with an only progressive ramp-up in supply should support a positive supply/demand balance, driving higher pricing and margins into 2022,” said a team of analysts led by Arnaud Lehmann.
- The analysts said recent sector updates suggest housing demand is ongoing and strong, with the supply side at a slower pace and completions and numbers of outlets still “significantly” below 2019 levels.
- “This should support positive pricing and protect margins despite pressures from cost inflation,” they said.
- They said the U.K.’s stamp duty holiday had just a limited hit on demand, which suggests a limited headwind from its September removal.