Does the budget mean that house-building stocks are still a sell?

Three weeks ago I wrote that shares in three of the UK’s biggest house builders were hugely overvalued on the basis that house prices were quite simply too high and that any correction in the value of UK house prices – which I regarded as inevitable – was not discounted. This week Chancellor Osborne announced a series of measures to boost the UK housing sector in his budget. Shares in house builders have reacted positively to that news. Are they reflecting a new reality? Should I change my tune?

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