Barratt (LON: BDEV) & Redrow (LON: RDW): 2 housing stocks to buy

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Barratt (LON: BDEV) & Redrow (LON: RDW): 2 housing stocks to buy

 Barratt (LON: BDEV) & Redrow (LON: RDW): 2 housing stocks to buy

Highlights

  • Some UK towns recorded a sharp growth in their average property prices in 2021, with Taunton recording the maximum growth.
  • A pandemic-induced ‘race for space’ by UK real estate buyers has resulted in the boom in the housing sector.

A rise in demand in the housing sector due to UK property buyers’ ‘race for space’ has driven up the average prices of property in certain towns in the country. The UK town, Taunton, recorded the highest growth rate in 2021, rising by 21.8 per cent, according to data by UK mortgage lender Halifax.

This sharp rise in growth which has been dubbed the ‘race for space’ has come about as home buyers shifted their priorities, seeking out larger homes and more space amid pandemic related lockdowns and restrictions.

As per the Halifax data, the average price of the property in Taunton increased to £315,759 for the year to October 2021.

Newark’s prices saw the second-highest growth rate between 2020 and 2021, rising by 20 per cent. The third-ranking town in the list was Rochdale, recording a growth rate of 18.5 per cent in 2021.

At the same time, the combined UK average growth rate for the period was at 6.2 per cent.

Let us take a look at the investment prospects of 2 FTSE listed homebuilding stocks:

  1. Barratt Developments plc (LON: BDEV)

Barratt Developments is one of the UK’s biggest residential property development companies. It is a part of the FTSE 100 index.

The group forecast its FY 2022 wholly-owned completions to increase in the range of 17,000 and 17,250 homes subject to certain conditions, as per its AGM trading update. It aims to have 250 home completions from its joint ventures in FY 2022.

 BDEV share price and volume

Image source: Refinitiv

Barratt’s shares closed at GBX 749.20, higher by 1.44 per cent on Wednesday, 29 December. And its market cap was at £7,551.91 million, while its one-year return stood at 9.92 per cent as of date.

Meanwhile, the FTSE 100 index closed at 7,420.69, higher by 0.66 per cent.

Related Read: Barratt (BDEV) & Persimmon (PSN): Should you buy these housing stocks?

  1. Redrow PLC (LON: RDW)

Redrow PLC is a housebuilding firm in the UK and is a constituent of the FTSE 250 index.

The group’s net private reservations, for the 19 weeks to 5 November, rose by 2 per cent to  £672 million, from £658 million in the year before.

Whereas the private revenue per outlet per week, during the period, increased to £309 thousand, up from £298 thousand in the previous year.

 RDW share price and volume

Image source: Refinitiv

Redrow’s shares closed at GBX 709.00, up by 2.04 per cent on 29 December. And its market cap was at £2,447.02 million, while its one-year return stood at 21.82 per cent as of date.

Meanwhile, the FTSE 250 index closed at 23,517.27, up by 1.06 per cent.

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