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Highlights
- The UK housing market witnessed a surprise rise in the number of housing transactions in December 2021.
- The numbers demonstrate underlying high demand for properties from homebuyers and give signs about where the housing market is heading in 2022.
The UK housing market witnessed a surprise rise in the number of housing transactions in December 2021. As per the early estimates, around 100,110 transactions took place in the last month of 2021, which is 7.6% higher than November month according to the latest figures by HM Revenue and Customs (HMRC).
After the end of the stamp duty holiday in October 2021, many market experts had predicted a gradual decline in housing transactions. However, the recent monthly number demonstrates the underlying high demand for properties from homebuyers and gives signs about the housing market direction in 2022.
As per market experts and recent business updates by top housebuilding companies, the consumer-side demand is expected to remain high. However, rising inflation and mortgage rates might lower consumer confidence.
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Let us, deep-dive, into investment prospects of 3 FTSE listed housing stocks:
Taylor Wimpey Plc (LON: TW.)
FTSE100 listed housebuilding company offers homes of different sizes to its consumers in the UK and Spain.
The company reported robust business performance for the financial year ended 31 December 2021. It reported a 47% rise in total UK home completions to 14,087 with overall average selling price increasing to £300,000. The total forward order book of the company stood at £2,550 million during the period. The company completed 215 homes in the Spain market, with an overall positive demand scenario amid a rise in second-home buyers in the Spain market.
Taylor Wimpey Plc’s current market cap stands at GBP 5,870.5 million as of 21 January 2022.
Barratt Developments Plc (LON: BDEV)
The company is engaged in constructing commercial and residential properties in the UK. It delivered 3,699 homes to its buyers during the trading period from 1 July to 10 October 2021.
The company continues to witness high consumer demand and expects to deliver close to 17,250 homes to buyers by the end of the current financial year.
Barratt Developments Plc’s current market cap stands at GBP 6,949.1 million as of 21 January 2022.
Persimmon Plc (LON: PSN)
FTSE100 listed company has business operations in the UK. It runs its business under various brand names like Charles Church, Westbury Partnerships. The company recently announced its final results for the year ended 31 December 2021.
The total group revenue was £3.61 billion (2020: £3.33 billion), with an improvement in new home completion to 14,551 and an average selling price of £237,050. The company’s current forward sales position stands at £1.62 billion, ensuring future revenue and profitability for the company.
Persimmon Plc’s current market cap stands at GBP 8,190.8 million as of 21 January 2022.
