5 housing stocks to buy amid record property prices in October

Highlights 

  • UK house prices recorded the most significant October rise in six years with a 1.8% monthly increase.
  • October was described by Rightmove as the first "full house" since March 2007, with prices reaching record-high levels.
  • Housing market fundamentals remain strong, providing a window of opportunity to buyers for fixing their mortgage interest rate prior to a potential rate rise.

The UK house prices have filed their most significant October rise in six years, according to the latest figures from property portal Rightmove. Describing October as the first "full house" since March 2007, Rightmove said that all regions in the UK, property market sectors, witnessed record-high prices. Prices increased across the property ladder, ranging from first-time buyers to second steppers to people on top of the ladder.

Overall, October witnessed a 1.8% monthly increase in the house prices across UK, jumping up to £344,445. Since October 2015, this has been the largest price rise recorded at this time of the year. Prices were 6.5% higher annually.

Tim Bannister, Rightmove Director of Property, said that there has been an average price rise of around £6,000 in the month, amid hot competition for available property on sale this autumn, but still the level of properties coming to the market isn’t enough. The stock shortages will continue, accompanied by strong housing market fundamentals, which represents that ending the stamp duty holiday has not hit the sector substantially.

UK Chancellor of the Exchequer Rishi Sunak had extended the stamp duty cut from March to June at £500,000 nil rate band, which was reduced to £250,000 threshold till September.

The strong housing market fundamentals have provided the buyers with an opportunity to fix their mortgage interest rate prior to a potential interest rate hike, as per Rightmove.

RELATED READ:  5 housing stocks to buy as prices may continue rising

Let’s take a look at some of the UK housing stocks that may be impacted by this news.

Belvoir Group PLC (LON: BLV)

Belvoir Group plc is a leading UK-based property franchise group, and its current market cap stands at £92.30 million. It has given a return of 71.28% in 1 year. The previous close price of Belvoir Group plc’s shares was GBX 247.50 as of 15 October 2021.

LSL Property Services plc (LON: LSL)

LSL Property Services plc is a UK-based company which offers residential property services to lenders, tenants, landlords, and buyers. Its current market cap stands at £443.77 million. It has given a return of 86.73% in 1 year. The previous close price of LSL Property Services plc’s shares was GBX 422.00 as of 15 October 2021.

RELATED READ: UK property prices hit all-time high, 5 LSE stocks to buy now

Property Franchise Group PLC (LON: TPFG)

Property Franchise Group PLC is a UK-based real estate company. Its current market cap stands at £95.49 million. It has given a return of 50.51% in 1 year. The previous close price of Property Franchise Group PLC’s shares was GBX 298.00 as of 15 October 2021.

Harworth Group PLC (LON: HWG)

Harworth Group PLC is a brownfield land developer and property regenerator. Its current market cap stands at £550.24 million. It has given a return of 82.55% in 1 year. The previous close price of Harworth Group PLC’s shares was GBX 170.50 as of 15 October 2021.

Safestore Holdings Plc (LON: SAFE)

Safestore Holdings Plc is the largest self-storage group across the UK. Its current market cap stands at £2,487.72 million. It has given a return of 49.56% in 1 year.  The previous close price of Safestore Holdings PLC’s shares was GBX 1,180.00 as of 15 October 2021.

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