UK homebuilders, property stocks fall as rate hike fears weigh in

LXi REIT

15/08/2023 14:27

** UK homebuilders' index  .FTNMX402020  declines 1.3%,
extending losses for third consecutive day
    ** FTSE Real Estate index  .FTUB3510 , which includes
commercial property firms and real estate investment trusts
(REITs), drops 1.4%
    ** Shares of UK real estate firms fall after unexpectedly
high wage growth in the three months ended June revived fears
that Bank of England (BoE) might raise interest rates next month
to tackle sticky inflation
    ** Rate hikes filter down to high mortgage rates, denting
demand for homes, while rising yields due to BoE rate increases
batter investment market opportunities for commercial property
firms
    ** Persimmon  PSN.L  down 2.1%, top pct loser on UK
housebuilders' index; mid-cap homebuilder Bellway  BWY.L  also
slides 2%
    ** FTSE 100 commercial property firm Land Securities
 LAND.L  among top pct losers on Real Estate index, down 2.2%
    ** All 28 constituents, which are currently trading on Real
Estate index, decline

 (Reporting by Aby Jose Koilparambil in Bengaluru)
 ((abyjose.koilparambil@thomsonreuters.com))