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Highlights
- UK’s property market in 2021 is estimated to be the busiest it’s been since 2007, going by property transactions.
- About 1 in 16 properties in the country are expected to see a change of hands by December end.
The UK property market this year is estimated to be the busiest it’s been since 2007, going by property transactions, according to UK based real estate site Zoopla’s latest house price index.
The rise in transactions has been driven by a ‘race for space’ as buyers are looking for homes with more space due to the pandemic. The data found that 1 in 16 homes are set to change hands by the end of next month and that the annual house price growth in October stood at 6.9 per cent (a near 7 years high) compared to 3.5 per cent in October last year.
The average house value in the UK has now risen to £240,000, compared to £200,000 in 2016 and that the average UK housing prices have risen by £15,500 over the past year.
This boom in the industry has been due to a disparity between supply and demand.
For those who are looking to invest in housebuilding stocks, these 2 FTSE listed real estate stocks can be considered:
- Vistry Group PLC (LON:VTY)
Vistry is a UK based house building firm and is a constituent of the FTSE 250 index.
The group in its latest trading update, stated that it is on track to meet its FY 2021 adjusted profit before tax target of about £345 million.
The group forecast its housebuilding business could offer higher returns in FY 2022 on the back of its controlled volume growth and with an improvement in its gross margin to around 23 per cent.
Image source: Refinitiv
Vistry’s shares were higher by 3.5 per cent, trading at GBX 1,109.00 on Monday at 10:23 AM BST, while the FTSE 250 index was at 22,874.78, higher by 1.50 per cent. The group’s one-year shareholders return stands at 29.67 per cent as of today.
- Watkin Jones PLC (LON:WJG)
Watkin Jones is a UK based residential-for-rent developer and manager and is a part of the FTSE AIM UK 50 index.
The group’s operating profit for FY 2021 is expected to be in line with its expectations. However, it anticipates its FY 2021 net cash to be at £125 million, about £40 million ahead of the group’s earlier expectations.
Image source: Refinitiv
Watkin Jones’ shares were higher by 0.41 per cent, trading at GBX 246.00 on Monday at 10:32 AM BST, while the FTSE AIM UK 50 index was at 6,420.86, up by 1.31 per cent. The group’s one-year shareholders return stands at 38.67 per cent as of today.
