Barratt, Taylor Wimpey, Berkeley: 3 housing stocks in focus today

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Barratt, Taylor Wimpey, Berkeley: 3 housing stocks in focus today

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 Barratt, Taylor Wimpey, Berkeley: 3 housing stocks in focus today
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Highlights

  • As per the RICS survey, 79% of its members reported a rise in housing prices across the UK in February 2022
  • RICS members expect an average 4.5% rise in rents over the next 12 months.

The housing prices in the United Kingdom show no signs of a slowdown and continue their rise in 2022. According to the latest survey conducted by the Royal Institution of Chartered Surveyors (RICS), a UK-based professional body of surveyors, 79% of its members reported a rise in housing prices across the UK in February 2022 and anticipate further price rise in the coming 12 months.    

As per the survey, the housing prices showed no signs of slowdown despite high inflation, a recent hike in interest rates, and phasing out of stamp duty holidays. In addition, RICS members expect an average 4.5% rise in rents over the next 12 months. Most industry experts point to demand-supply mismatch as the key reason that might keep the housing price at elevated levels.

In recent times, various housing surveys conducted in the UK points to similar trend and expect a price increase in the housing segment. The higher housing prices will be positive for housebuilding companies as these companies could sell their inventory at higher average selling prices leading to higher revenue and profitability.

3 FTSE100 housing stocks in focus today

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Let us look at 3 FTSE listed housing stocks that are likely to remain in focus:

Barratt Developments Plc (LON: BDEV)

FTSE100 listed company does the acquisition and development of land. It operates in the housebuilding and commercial segment.

In January 2022, Barratt announced the acquisition of Gladman Developments Limited, a privately-owned land sourcing company. Barratt Developments witnessed an excellent business environment in 2021, and it reported an operating profit of £434 million on revenue of £2247.1 million for the six months to 31 December 2021.

Barratt Developments Plc’s last close was at GBX 548.60 on 09 March 2022, with a market cap of £5,437 million.

Taylor Wimpey Plc (LON: TW.)

The housebuilding company builds and delivers various types of homes in the UK. The company is currently undertaking the first tranche of its £150 million share buyback program, which it announced on 3 March 2022.

Overall, Taylor Wimpey’s business reported excellent numbers for the year ended 31 December 2021. Its total home completion rate increased by 47% to 14,087 in 2021, with growth in average selling price.

Taylor Wimpey Plc’s last close was at GBX 133.70 on 09 March 2022, with a market cap of £4,665 million.

Berkeley Group Holdings Plc (LON: BKG)

The company is engaged in the development of residential and mixed-use properties in the United Kingdom.

For the six months ended 31 October 2021, Berkeley Group reported total revenue of £1,220.7 million, a rise of 36.3%, mainly driven by higher consumer demand for new homes. Its profit before tax stood at £290.7 million during the period.

Berkeley Group Holdings Plc’s last close was at GBX 3,772 on 09 March 2022, with a market cap of £4,167 million

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