Developers were among the main domestic beneficiaries of the FTSE 100’s sustained rally today, on growing hopes that the end of the house market slowdown could soon move into view.
Some of the biggest names in the sector took up residence on the leaderboard as investors continued to bet on the prospect that interest rates are near their peak, which would bring some clarity to the mortgage market.
Persimmon led the way, adding 18p to 1089p. Barratt Developments was 7p stronger at 458p. Taylor Wimpey gained 1.4p to 120p.
Overall, the FTSE 100 rose another 52 points to 7725.16, having gained almost 150 points over the previous session.
The rally came after the European Central Bank implied it had finished lifting rates. That sparked talk across global markets that the current cycle of tighter monetary policy was near its end.
The advance faces a stern test next week, with the Bank of England’s interest rate decision due on Thursday. City experts expect the fifteenth consecutive hike to take base rates to 5.5%. But they are also watching for signs it may be the last of the rises, which began in December 2021 to tame inflation.
Joshua Mahony at Scope Markets said: “Strength for UK housebuilders in the face of falling prices does signal a feeling that the BoE will follow their ECB counterparts when they meet next week.”
