Goldman Sachs caused a rally in U.K. homebuilders on Wednesday with an ultra-bullish analysis of the country's resurgent housing market.
The investment bank said it saw significant value in the sector as the housing recovery begins to take shape in the U.K. Shares of homebuilder Taylor Wimpey rose by 3.9 percent with an upgrade to a "conviction buy". Bovis Homes and Barratt also rose more than 3 percent after an upgrade to a "buy". Persimmon shares also rose 6 percent, Crest Nicholson by 1.9 percent, Bellway by 2.9 percent, Redrow by 2.6 percent, and Berkeley Group by 2.2 percent.
And there was also buying of U.K. real estate agents, with Countrywide rising 2.4 percent in morning trade on Wednesday.
Helped along by government initiatives like "Funding for Lending" and the "Help to Buy" home-buyers' program, of which an updated version was launched on Tuesday, leading indicators have pointed to a strong rise in house prices in the U.K.
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British house prices rose at their fastest rate in 11 years in September and sales hit a four-year high, a survey by the Royal Institution of Chartered Surveyors showed on Tuesday, suggesting a sustained recovery in the property market. Meanwhile, property website Rightmove has predicted that prices will increase by 6 percent this year, from an initial estimate of 2 percent at the start of the year.