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Highlights
- The average housing prices in the UK have extended their rise for the fifth successive month, reaching a fresh high of £272,992 as per the latest housing price index report by Halifax
- The mortgage lender expects the fast growth pace of property price increases to slow down next year.
The average housing price in the UK extended their rise for the fifth successive month, reaching a fresh high of £272,992 as per the latest housing price index report by Halifax.
In the three months to November 2021, the housing price rose by 3.4%, the highest property price rise since 2006. However, the fast growth pace of property price increases is expected to slow down next year, according to mortgage lender Halifax.
The consistent rise in housing prices in the UK is mainly due to multiple factors like stamp duty holidays by the UK government that act as a positive trigger for demand, record-low mortgage rates by the lenders and shortage in supply of available properties. The high demand for new homes has positively impacted the housebuilder company.
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Let us explore the investment prospects of 2 FTSE listed housing stocks:
Taylor Wimpey Plc (LON: TW.)
FTSE100 listed company operates in residential property development. The company builds residential apartments of different sizes and has operations in the UK and Spain.
Today, the company announced that its chief executive, Pete Redfern, will step down from his position after spending over 14 years with the company. The CEO will leave the business once a suitable candidate is found to fill the place. The company is currently in the recruitment process and will be considering both internal and external candidates for the CEO role.
Pete Redfern will remain with the company till the new CEO is appointed by the company’s management to ensure a smooth transition. The company’s business performance has been excellent in recent times, driven by strong underlying demand for new homes. Moreover, the company is on track to achieve its full-year guidance, including a medium-term operating margin target of 21-22%.
Taylor Wimpey Plc currently trades at GBX 168.80, up by 0.60% on 08 December 2021 at 10:15 am GMT+1, with a market cap of £6,120 million.
Berkeley Group Holdings Plc (LON: BKG)
The company is primarily into the business of residential and mixed-use property development. It sells its inventory under various brands names like Berkeley First, Berkeley Partnership, and many other brands.
The company announced its interim result for six months to 31 October 2021. It reported a 36.3% rise in revenue at £1,220.7 million. The company sold around 1,828 homes at an average selling price of £647,000 during the period. The gross profit of the developer stands at £346.5 million, while its profit before tax is at £290.7 million.
Following a solid performance in the first half, the company has raised its earnings expectation by 5% in the current financial year. At the same time, the company’s forward order book remains firm at £1.70 billion, ensuring stable revenue from the business. The company plans to return £486.2 million to shareholders either through dividend payout or share buyback.
Berkeley Group Holdings Plc currently trades at GBX 4,843, up by 4.49% on 08 December 2021 at 10:15 am GMT+1, with a market cap of £5,194 million.
