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Highlights
- Rightmove has said that housing prices in the UK is expected to rise by 5% in 2022.
- The continued rise in demand and a low supply of new homes support the price growth prediction by Rightmove.
According to the property comparison website Rightmove, housing prices in the UK is expected to rise by 5% in 2022, extending the strong demand for new homes witnessed this year. Moreover, the number of properties available for sales has hit a record low level at estate agency branches as per the data collected by the Rightmove website.
In addition, there is a substantial rise in properties listed on the company’s website that is marked as sold, which support the price growth prediction by Rightmove. Also, the stock of new homes available for sales is at record low levels in December, as per the company.
Here we are going to discuss 3 FTSE listed housing stocks that may get benefited with the expected price rise:
Bellway Plc (LON: BWY)
FTSE 250 listed company operates its housebuilding business in the United Kingdom. The company sells its inventory under the brand name of Ashberry and Bellway.
The rising demand scenario in the UK housing market has benefitted the company resulting in a 40.3% rise in revenue at £3,122.5 million for the financial year ended 31 July 2021. Its operating profit stood at £531.5 million, while the earnings per share rose by 102% at 316.9p per share. The company’s forward order book stands at £1,966.3 million as of 3 October 2021.
Bellway Plc’s last close was at GBX 3,174 on 20 December 2021, with a market cap of £3,916 million. The company’s stock has given 11.6% return to its shareholders in the last one year.
Redrow Plc (LON: RDW)
The housebuilding company acquires and develop land parcels in the United Kingdom. It sells apartments of different sizes. The company reported 5,620 home completion, a rise of 39% in the 52 weeks ended 27 June 2021. The company’s total order book stands at £1.43 billion, which will help it achieve revenue growth and its medium-term guidance in the upcoming year.
The company has given medium-term guidance where it expects to earn a total revenue of over £2.2 billion with an operating margin of 19.5% and earnings per share of above 90p per share in 2024.
Redrow Plc’s last close was at GBX 670.40 on 20 December 2021, with a market cap of £2,361 million. The company’s stock has given a 24.6% return to its shareholders in the last one year.
Vistry Group Plc (LON: VTY)
The company operates in the UK housing market through partnerships and housebuilding segments. The housebuilding segment develops land and delivers apartments to its buyers. The partnerships segment joins hands with the housing association and public sector to acquire and develop land across different sites. The company’s forward sales position remains around £3 billion as of 8 November 2021. The company’s inventory is fully sold for FY21, and it expects to continue the positive momentum for the upcoming fiscal year of FY22.
Vistry Group Plc’s last close was at GBX 1,109.50 on 20 December 2021, with a market cap of £2,466 million. The company’s stock has given a 23.76% return to its shareholders in the last one year.
