BCPT, PCA, SUPR: Stocks to eye as house price growth slumps

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BCPT, PCA, SUPR: Stocks to eye as house price growth slumps

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 BCPT, PCA, SUPR: Stocks to eye as house price growth slumps
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Highlights

  • By the end of 2022, house price growth is expected to slow down and fall in line with the longer-term average, as per Zoopla.
  • As per Zoopla’s index for June, the value of an average UK property stands at £256,000, up by 8.3%.
  • The overall housing demand is anticipated to go down due to the rising mortgage rates.

By the end of 2022, house price growth is expected to slow down and fall in line with the longer-term average, suggests a property website. This is due to the home buyers becoming more and more cautious amid the mortgage rate hikes. As per Zoopla’s index for June, there has been an annual increase of 8.3% in the price of an average UK home, and this has lifted the value of an average property to £256,000. An annual increase of 5% is expected in house prices by the end of this year.

The five-year average growth rate stood at 4.3% and this growth rate was well above it. Even amid the rough economic conditions and rising inflation, several latest reports about the housing market have shown that house prices are consistently rising and hitting record-high levels. As the cost-of-living crisis is escalating, its effects are expected to spillover to the property market approaching the end of 2022 and entering 2023, claims Zoopla.

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The overall housing demand is anticipated to go down due to the rising mortgage rates as the rising costs are bound to impact affordability. However, with more people working from home due to the pandemic-related changes in working environments, the housing demand is expected to stay strong. Older people who retired during the pandemic are also expected to fuel the housing demand as they generally downsize and relocate as per their financial conditions.

In some cases, rising inflation may also help in boosting market activity as people may look for better value for money and move to more affordable houses. Amid the rising inflationary pressures, UK investors can keep an eye on the following 3 real estate stocks offering positive returns.

Balanced Commercial Property Trust Ltd (LON: BCPT)

The shares of the trust help investors explore UK commercial property. On Tuesday, the BCPT shares surged by 0.50% at 8:10 AM (GMT+1) on Tuesday and were trading at 120.40. Enjoying a market cap of £854.71 million, the BCPT has offered its shareholders returns of 28.82% and 14.83% on a one-year and YTD basis.

Palace Capital plc (LON: PCA)

Regional property firm Palace Capital plc shares were trading at GBX 280.00 at 8:13 AM (GMT+1) on Tuesday. With a market cap of £123.28 million, it has offered its investors favourable returns of 4.55% and 2.60% on a one-year and YTD basis as of 2 August. However, its earnings per share stand in the negative zone, at -0.12.

Supermarket Income REIT Plc (LON: SUPR)

The shares of the UK-based real estate investment firm, Supermarket Income REIT Plc, on Tuesday, dipped by 0.39% at 8:15 AM (GMT+1) and were trading at 127.00. Boasting a market cap of £1,580.83 million SUPR handed positive returns to its investors with returns of 5.83% and 3.93% respectively on one year and YTD basis. 

 

 

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