House builders' share price rise will be short-lived says analyst

House builders’ shares warmed up yesterday despite the bitter weather as a result of talk that visitor numbers have been surprisingly buoyant over the past couple of weeks.

Two of the big names to benefit over the past 24 hours were:

• Persimmon – up 8%
• Bovis homes – up 7%

If you think this heralds the start of better times then Alastair Stewart, analyst with Dresdner Kleinwort, will knock some sense into you.

Talking to the Financial Times today, Stewart says: “If this is not snuffed out by Siberian weather, any talk of green shoots during the imminent results round could lead to a rally.

“That should be a further sell signal in our view since we are convinced it will be short-lived.”