MARKET TALK: UK Housebuilders Should Improve After The Budget

11th Jun 2010 10:41

0941 GMT [Dow Jones] UK housebuilders offer good value and their shares should perform better once the government's budget is out of the way, says Liberum Capital. Adds that sector underperformance has been driven by risk aversion. Says the budget on June 22 is almost certain to include an increase in capital gains tax, from 18% back to 40% or even 50%. Says this is potentially serious as it could lead to sales of second homes, but thinks the government will restore enough taper relief to protect the housing market. Tops picks are Barratt Development (BDEV.LN), Berkeley (BKG.LN) and Redrow (RDW.LN) rated at buy. Also highlights Persimmon (PSN.LN), rated at hold. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 11, 2010 05:41 ET (09:41 GMT)