Persimmon 'top pick' as housebuilder valuations fall to lowest since Truss

UK housebuilder shares have fallen to valuation levels not seen since the aftermath of Liz Truss's disastrous 2022 mini-budget, as soaring gilt yields raise fresh fears about the mortgage market, according to analysts at Jefferies. The investment bank says the sector is trading at price-to-net tangible asset value (P/NTAV – a standard measure comparing a company's share price to the value of its physical assets) levels comparable to late 2022, when mortgage rates surged by 3-4 percentage points and the housing market seized up.