He adds: “At the moment the market has probably priced the sector quite fairly.
“We would like nothing more than for the market to get irrational and sell off housebuilders, it would be an opportunity.”
Short of a recession, Cullen doesn’t see any one reason why housebuilding stocks might see a correction in the coming years.
Edentree Investment Management’s Ketan Patel echoes the positive sentiment on housebuilder’s long-term prospects.
“Investors in the housebuilding sector are facing a hugely complex political environment, exacerbated by a minority government entering into Brexit negotiations,” he says.
“The near-term economic data is another headwind, with anaemic wage growth, high levels of personal debt and the prospect of rising interest rates all negative for housebuilders. However, over the longer term, prospects remain bright for the sector as ever-growing demand sustains a large supply deficit, especially for affordable and social housing.”
It may be the end for soaring dividend payments and returns may not hit the peaks of 200% over the coming years, but in a time of limited yield where income is scarce, housebuilding stocks appear to offer a solid investment opportunity for investors and funds alike.
It does seem the Brexit naysayers have been proven wrong, at least this time.
