Susannah Streeter, chief investment strategist at Wealth Club, said: “There are glimmers of hope today that the UK housing market may finally be finding its footing.
“Nationwide’s latest figures showed annual house price growth accelerated to 2.2 per cent in June, up from 1.7 per cent in May, as easing mortgage rates helped improve affordability.
“After data showed homes have been lingering on the market for many months and many sellers are having to accept lower offers, there are early indications that buyers may slowly be venturing back off the sidelines.
“Investors will want to see stronger reservation rates feeding through to the listed housebuilders’ order books before judging that the sector has turned a corner, but if borrowing costs continue to edge lower amid hopes the Bank of England will be restrained in hiking rates, there could be more light at the end of the tunnel.
“However, optimism has been subdued by lingering legal uncertainty, with shares in Taylor Wimpey, Persimmon and Barratt Redrow falling back as investors continue to assess the potential implications of a proposed multi-billion-pound class action against several of the UK’s biggest housebuilders.
“While the case still requires approval from the Competition Appeal Tribunal and the companies strongly deny wrongdoing, it’s another dark cloud hanging over a sector which was only just beginning to glimpse brighter skies.
“Given that the certification process alone could take many months, that uncertainty isn’t likely to lift any time soon.”
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