Cairn
Homes, Springfield Properties and Vistry Group were the sector’s top performers
in the second quarter with share price gains of 32%, 28% and 23% respectively,
according to data collated by Tony Williams, chief executive of adviser
Building Value.
Of the 16
top UK housebuilders, only Watkin Jones suffered a fall in share price in Q2,
slipping 1.8%. This is despite the developer posting strong half-year results
in May, with a 19% rise in pre-tax profit for the six months to the end of
March.
Williams
put the fall in share price down to the large number of purpose-built student
accommodation schemes Watkin Jones develops. “[There] are great fears
post-Covid-19 [about PBSA], especially the future of international students
coming to the UK,” he said.
June saw
the fastest rise in construction activity for nearly two years, following the
sharpest fall on record, according to the latest UK Construction Purchasing
Managers Index from IHS Markit/CIPS.
However,
year on year, listed housebuilders’ share prices painted a more mixed picture.
In the 12
months to 30 June, housebuilders’ share prices fell by an average of 15%. Some
fared better than others. Persimmon, Berkeley Group and Countryside Properties
saw year-on-year increases of 14%, 11.6% and 10.9% respectively.
However,
McCarthy & Stone’s share price crashed 48%, Crest’s fell 44% and Vistry’s
slumped 31%.
Share
price movements across the rest of the industry were marginally positive in Q2,
with offices showing a 3.4% quarter-on-quarter increase on average. However,
this figure masked significant differences in performance. While IWG jumped
60%, Helical and Derwent were both down 10%.
Year on
year, office specialists are down 30%, listed student accommodation firms are
down 34% and retail specialists have seen their price crash by 50%.