2 FTSE 100 Homebuilding Stocks in Focus as January Average Housing Prices Fall

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2 FTSE 100 Homebuilding Stocks in Focus as January Average Housing Prices Fall

 2 FTSE 100 Homebuilding Stocks in Focus as January Average Housing Prices Fall

Source: ungvar, Shutterstock

Summary

  • The Office for National Statistics announced the average UK housing prices in January fell by £1,000 to £249,000 after touching a record high of £250,000 in December.
  • The fall was attributed to lockdown-related restrictions and uncertainty over the duration of the stamp duty holiday.

The Office for National Statistics (ONS) announced the average UK housing prices in January fell by £1,000 to £249,000 after touching a record high of £250,000 in December. However, the latest housing price data still reported a £17,000 increase from its January 2020 figures.

Moreover, the UK’s average house prices growth rate stood at 7.5 per cent in the last 12 months to January, lower than an 8 per cent growth rate in December 2020 due to lockdown related restrictions and the uncertainty over the duration of a stamp duty holiday.

Region-wise, England’s annual average house prices rose by 7.5 per cent to £267,000, while Wales witnessed a 9.6 per cent growth to £179,000. Meanwhile, Scotland’s annual prices grew by 6.9 per cent to £164,000, and Northern Ireland’s rose by 5.3 per cent to £148,000.

Economists said while the housing price growth rate declined in January after being on a consecutive upward climb since July 2020, it still experienced a mini boom in the month.   

Also Read: How Housing Stocks Reacted to Halifax Report of Fall in Prices

Here we take a look at 2 FTSE-listed homebuilding and construction stocks with a five-year average dividend yield of over 2 per cent:

 

  1. Ferguson PLC (LON: FERG) 

FTSE 100-listed housing company Ferguson announced its half-year results on 16 March for the period ended 31 January, showing a 4.2 per cent increase in the revenues to US$10.31 billion from a year ago.

The company also announced its interim dividend rose to 72.9 cents per share and set for a May 2021 payout. CEO Kevin Murphy said the topline growth was due to managing the firm’s costs despite facing pandemic-related challenges.

(Source: Refinitiv, Thomson Reuters)

 

The company’s shares were trading at GBX 8,596.00, down by 0.02 per cent as of 24 March at 13:05 HRS GMT+1, while the broader index FTSE 100 stood at 6,681.10, down by 0.27 per cent.

The company’s market cap was at £19.350 billion while its 1-year return was at 110.38 per cent. Its five-year average dividend yield was at 2.2 per cent.

  1. Taylor Wimpey PLC (LON: TW)

Another FTSE 100 listed housing and construction company Taylor Wimpey announced the completion of Kilmarnock homes in Scotland on 23 March. The project, which was first started in 2004, involved the completion of 104 new homes in the final phase.

(Source: Refinitiv, Thomson Reuters)

 

The company’s shares were trading at GBX 179.20, down by 2.53 per cent as of 24 March at 13:12 HRS GMT+1. The company’s market cap was at £6.702 billion while its 1-year return was at 56.95 per cent. Its five-year average dividend yield was at 2.6 per cent.

 

 

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