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Summary
- Real estate firm Savills Plc said property prices might increase by as much as £10,000.
- Savills believes that extension of stamp duty holiday would push up house prices.
- CLS Holdings, Grainger Plc and St Modwen Properties Plc are having positive outlook for the business going ahead.
There is much optimism in the real estate market after the stamp duty holiday was extended by Chancellor of the Exchequer Rishi Sunak and a successful vaccination drive. Real estate firm Savills Plc (LON: SVS) has said that it sees real estate prices undergoing a five-figure appreciation this year. The company has also revised its forecast to a 4 per cent growth, from earlier predicted 0 per cent.
Savills believes that contrary to the earlier near-stagnant price predictions, the property prices might increase by as much as £10,000. Here is a look at three FTSE 250 companies that could benefit from the optimism around the real estate market.
Copyright © 2021 Kalkine Media Pty Ltd.
CLS Holdings (LON:CLI)
The government’s extension of the stamp duty holiday is expected to have a positive impact on real estate stocks. CLS Holdings had a positive outlook on its business and growth during the pandemic is evidenced in buying of overseas properties as well as ones in the UK.
The company had purchased two office properties in December, one in Germany and the other in the UK, at a combined cost of £55.9 million. It purchased the German property was worth € 43.5 million and the UK property worth £16.9 million.
The shares of the company closed up by 0.69 per cent at GBX 218.50 on the London Stock Exchange on 9 March 2021.
Grainger Plc (LON: GRI)
The residential property firm recently in February appointed Robert Hudson as its CFO. Hudson took over from Vanessa Simms. The company said that despite the challenges of the lockdown, the company is continuing to grow. In January, it announced that for the first four months the company posted good growth in rentals and reported strong sales across the regions. Also, its residential arrears remained low at 1.9 per cent for the period.
The company’s shares closed higher by 0.59 per cent at GBX 272.80 on London Stock Exchange, on 9 March 2021.
St Modwen Properties Plc (LON:SMP)
The company in February said that though it saw considerable improvement in the second half of 2020, but for its whole year’s performance was hit by the Covid-19 crisis. The company’s net income from rental fell to £31.2 million for the year ended November 2020, from £40.1 million for the same period a year ago.
The company’s shares ended higher by 0.49 per cent at GBX 406.50 on the London Stock Exchange on 9 March 2021.
