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Highlights
- Housing prices in the UK rose by 2.1% in the past month. Overall, the housing price in the UK is up by 11% on an annual basis.
- As per the data published by Nationwide Society, the rise in housing prices is driven by low interest rates, higher household savings during the lockdown.
- Countryside Properties Plc, Redrow Plc and Bellway Plc are three midcap housing stocks that have seen good stock momentum.
Housing prices in the United Kingdom saw a jump of 2.1% in August 2021, as per the data by the Nationwide Building Society. It was the second-largest monthly gain in the last 15 years despite lower stamp duty benefits. On an annual basis, housing prices in the UK saw a growth of 11%, while the average home price stood at £248,857.
As per the Nationwide Society, the current rise in the UK housing prices is driven by the lower interest rates by the banks and finance companies, change in preference as more individuals are choosing big homes due to work from the home condition, also high household savings during lockdown is pushing the demand for houses.
Let us look at FTSE listed housebuilding stocks that have been showing positive momentum because of the rise in housing prices.
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Countryside Properties Plc (LON: CSP)
FTSE 250 listed company engages in housebuilding and land redevelopment. It is one of the leading companies in the mixed-tenure communities.
During the 13-week period ended 30 June 2021, the company’s revenue was up by 184% at £287 million, with total homes completion up by 144% at 1,096 homes. The company was working on 114 active sites during the period and has kept its outlook unchanged for the entire year. Also, the company’s current net debt stands at £33.2 million, down from £232.1 million reported in the third quarter of 2020.
Countryside Properties Plc currently trades at GBX 548, up by 0.09% on 3 September 2021 at 10:12 am GMT+1 with a market cap of £2853.92 million. In the last one year, the stock has delivered a 63.82% return to shareholders.
Redrow Plc (LON: RDW)
The company acquires and develop land in the United Kingdom. The company’s stock is a constituent of the mid-cap focused FTSE250 index.
For the financial year ended 27 June 2021, the company expects to generate revenue of £1.94 billion and completed a total of 5,620 houses. As of 27 June 2021, the company’s total order book stood at £1.43 billion. The company has a positive outlook for the next financial year, and it expects revenue of above £2 billion and an operating margin of 18%.
Shares of Redrow Plc currently trades at GBX 695, up by 0.23% on 3 September 2021 at 10:12 am GMT+1 with a market cap of £2,442 million. In the last one year, the stock has delivered a 48.59% return to shareholders.
Bellway Plc (LON: BWY)
The company sells its home inventory under the Bellway and Ashberry brands. It builds and sells all types of residential properties in the United Kingdom.
The company reported revenue of £3.1 billion, a rise of 41%. The company’s revenue was only 2.5% below the pre-pandemic level revenue (2019: £3,180 million), which signals that the company has completely recovered from the pandemic disruption. The company delivered a total of 10,138 homes, which is one of the highest completion rates in the UK housing sector.
Shares of Bellway Plc currently trades at GBX 3,456, up by 0.09% on 3 September 2021 at 10:12 am GMT+1 with a market cap of £4,260 million. In the last one year, the stock has delivered a 40.15% return to shareholders.
