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Homing in

A REPORT from Credit Lyonnais Securities Europe may warn of tougher times ahead for house builders but it also highlights some potential investment opportunities in the sector.

House building shares have fallen from an average of nine times earnings a year ago to 5.5 times today. Even if profits halve, the sector remains relatively cheap and underlying net assets should support the shares.

Moreover, some management teams may be tempted to seek to buy assets at a discount. Bellway, Berkeley, Bryant, Crest Nicholson and Persimmon are among the shares the broker favours.