After plunging to a year鈥檚 low last month, housebuilders are still struggling to break out of the mire as the Square Mile鈥檚 version of reality continues to haunt the sector.

This month鈥檚 selling spree began in earnest after ABN Amro lowered its rating on Barratt to 鈥渟ell鈥欌�� from 鈥渂uy鈥�. ABN also sprinkled some ashes over Persimmon, Redrow and Taylor Wimpey, which all tumbled after being moved to 鈥渉old鈥� from 鈥渂uy鈥�.

If that wasn鈥檛 bad enough, a couple of days later UBS decided to downgrade the entire European construction and building materials sector, cutting it to 鈥渘eutral鈥� from 鈥渙verweight鈥�, and warning the industry faced a 鈥渟trong headwind鈥� on the back of the US and UK housing market woes. UBS cut its ratings on Redrow to 鈥渟ell鈥� from 鈥渘eutral鈥� and Taylor Wimpey to 鈥渘eutral鈥� from 鈥渂uy鈥�. Not even a reasonably bullish forecast from Bellway this week could resuscitate prices.

At current prices, housebuilders look pretty good value as a long-term bet.

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