AUS
NZ
UK
CA
USA
IND
HIghlights
- Taylor Wimpey’s revenue stood at £2,196.3 million in H1 2021 compared to £754.6 million in H1 2020, representing an increase of 191% year-on-year.
- For H1 2021, Persimmon new home completions were 7,406, representing an increase from the previous year’s 4,900.
- Barratt Developments’ board announced an interim dividend of 7.5 pence per share to shareholders in February 2021 and a final dividend of 21.9 pence per share.
Inflation in the housing sector rose in Britain in October, triggered by a shortage of sellers. The price rise is expected to continue in the coming months as well. According to the Royal Institution of Chartered Surveyors, a net balance of 70% of its members reported a rise in house prices in October, up from 69% in September 2021. The report had pointed out the first increase in the house price balance in the month of May this year.
One of the key factors for the continued growth in house prices since July can be attributed to the tapering of the year-long exemption from the stamp duty tax on house purchases. Further, the Bank of England (BoE) refrained from raising rates in its November policy decision against investors’ expectations. Over 60% of surveyors expect house prices in the UK to continue to rise over the next 12 months. In view of this, let us review in detail the investment prospect in three housing stocks – Taylor Wimpey, Persimmon and Barratt Developments.
(Data source: Company release)
Taylor Wimpey Plc (LON: TW.)
Taylor Wimpey is a leading UK-based housebuilding company. Recently, Taylor Wimpey purchased land to build 121 new homes in Moodiesburn, Scotland. For the H1 ended 4 July 2021, Taylor Wimpey total house completions stood at 7,303 homes compared to 2,771 in H1 2020.
Taylor Wimpey’s revenue stood at £2,196.3 million in H1 2021 compared to £754.6 million in H1 2020, representing an increase of 191% year-on-year. Its profit before tax stood at £287.5 million in H1 2021 compared to a loss before tax of £39.8 million in H1 2020.
Taylor Wimpey’s board declared an interim dividend of 4.14 pence per share to shareholders.
The shares of Taylor Wimpey closed at GBX 158.00, up by 2.60% on Wednesday, 11 November 2021. The market cap of the company stands at £5,615.82 million.
Persimmon Plc (LON: PSN)
Persimmon is a leading housebuilding company that serves through 31 offices across the country. The company expects growth in new home sale completions for the full year to be approximately 10% higher than 13,575 legal completions in 2020.
For H1 2021, Persimmon new home completions were 7,406 representing an increase from the previous year’s 4,900. The group’s total revenues increased from £1.19 billion in H1 2020 to £1.84 billion in H1 2021.
Persimmon’s board announced a dividend of 125 pence per share to shareholders in March 2021 and 110 pence per share in August 2021.
The shares of Persimmon closed at GBX 2,703.00, up by 2.00% on Wednesday, 11 November 2021. The market cap of the company stands at £8,456.16 million.
Barratt Developments Plc (LON: BDEV)
Barratt Developments is a leading residential property development firm that operates across Wales, England and Scotland. Barratt Developments recorded total home completions of 17,243 in 2021 compared to 12,604 in 2020.
Barratt Developments’ profit before tax for 2021 was £812.2 million compared to £491.8 million in 2020. Its adjusted operating profit was £919.0 million during the period compared to £507.3 million in 2020.
Barratt Developments’ board announced an interim dividend of 7.5 pence per share to shareholders in February 2021 and a final dividend of 21.9 pence per share.
The shares of Barratt Developments closed at GBX 662.40, up by 1.91% on Wednesday, 11 November 2021. The market cap of the company stands at £6,645.13 million.
