Off the hook? McCarthy & Stone received a big boost this week after the government agreed to exempt builders of retirement homes from its proposed ban on ground rents. McCarthy & Stone is Britain’s biggest builder of retirement homes and the prospect of the ban, which had put about a third of its annual profits in jeopardy, had weighed heavily on its shares.
Down by as much as 35 per cent in the months after the government’s February proposal, McCarthy & Stone’s shares have rallied strongly for two days, rising a further 6 per cent or 7½p to 135p yesterday, as analysts, including at Peel Hunt, have begun to increase their profit forecasts.
Tempus recommended selling McCarthy & Stone shares in February, moving to a