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Agency stocks brush off HSBC’s warnings of housing market downturn

Estate agency share prices had a mixed response to dire warnings about housing demand and prices issued by HSBC last week.

The lender’s Building Material team issued a broker’s note that downgraded several building company stocks, warning that demand will fall by up to 20% over the next year and UK prices will decline by 7.5%.

It claimed that rising mortgage costs would dampen consumer confidence and buying power.


The note, widely covered by a range of publications, said: 

“The HSBC building materials team now forecasts a 20% fall in UK housing demand for a year from this autumn, a concomitant 7.5% fall in UK existing house prices, excluding central London at double that, and a 5% fall in UK new build prices.”

House building stocks including Barratt and Berkeley fell 4.4% and 5.4% respectively on Friday.

But estate agency stocks had mixed fortunes by the end of the trading day.

Share in Purplebricks fell 1.39% on Friday and The Property Franchise Group was down 1.04%, while LSL fell 0.5%.

However, Foxtons was up 1.1% and Savills rose 2.83%, while Winkworth and Belvoir’s share values increased by 4% and 5% respectively on Friday.

Listed portals Rightmove and OnTheMarket rose 2.5% and 2.7% respectively during the day.

  • Glenn Taylor

    is that a fall or a leveling up, simply takes house prices back to pre covid.
    covid created demand and a rush to move and with it a surge on value.
    Higher interest rates make lenders want to lend more not less.
    Prefer the wider notion that the market will steady with values slowing to 1% year on year.
    Election in two years will recreate feel good factor for votes both from Conservative and Labour and values will climb again.
    With BNG new home housing supply may fall behind target create demand and another surge in values.
    I dont think its a good idea to jump on the self destruction train to hell, its in nobodies interest.
    The new buzz word `correction`is ill advised imo


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