Is now the right moment to call time on our bull rating for UK housebuilders? That requires a fine-line judgment call because there are two pretty convincing cases, on the one side justifying doing just that, and on the other maintaining our so-far very successful buy stance.
IC TIP:
Hold
One thing that does seem certain is that the pace of recovery will slow considerably. That's not because the need for more housing is any less acute; it's just that housebuilders are running into constraints that look set to limit their ability to maintain the sort of growth seen during the past six years, notably labour shortages.