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UK housebuilders are under intense pressure this year. Barratt Redrow shares have dropped by 27%, while Taylor Wimpey, Barratt Redrow, and Persimmon have plunged by 27%, 28%, and 25% this year.

Persimmon PLC (LSE:PSN) shares rose 4% on Monday after JP Morgan named the housebuilder as its preferred stock in the sector while downgrading Taylor Wimpey PLC (LSE:TW.) and Vistry Group PLC (LSE:VTY) to 'underweight', as rising mortgage rates and build cost inflation force the bank to cut its 2027 earnings forecasts by an average of 20%.

Taylor Wimpey PLC (LSE:TW.) shares trade at an unjustified premium to peers, according to Deutsche Bank, which warned over the sustainability of the housebuilder's dividend.

Taylor Wimpey plc (TWODY) Q1 2026 Sales/Trading Call Transcript

Shares across the housebuilding sector fell after Taylor Wimpey PLC (LSE:TW.) warned of softer pricing in the order book and that build cost inflation will be higher than previously expected.