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Highlights
- The average house prices in the United Kingdom have increased to £245,200 as per the latest figures released by real estate company Zoopla Property Group.
- The elevated housing demand is positive news for the overall sector, including housebuilding companies that operate in the UK.
The average house prices in the United Kingdom have increased to £245,200 as per the latest figures released by real estate company Zoopla Property Group, which operates a property and price comparison websites.
The UK housing market continues to witness solid demand from buyers for a bigger family houses. However, the lower housing inventory is pushing upward pressure on prices. As a result, the average home value is up 8.1% in the year to February 2022, with price appreciation across all regions.
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The elevated housing demand is positive news for the overall sector, including housebuilding companies that operate in the UK. Let us look at FTSE listed housing stocks that could be in focus:
Berkeley Group Holdings Plc (LON: BKG)
The company is engaged in the development of residential and mixed-use properties in the UK. Cobham-based property developer market and sells its housing inventory under various brand names like the Berkeley, St George, Berkeley Commercial, etc. The company recently acquired the remaining 50% stake in St William Homes LLP, a joint venture between National Grid and Berkeley Group, for a total cash consideration of £412.5 million.
Berkeley Group Holdings Plc is currently trading at GBX 3,833 on 29 March 2022 at 12:27 PM, with a market cap of £4,274 million.
Taylor Wimpey Plc (LON: TW.)
FTSE100 listed company is one of the largest home construction companies in the UK. It builds and develops homes of different sizes and also has a business operation in Spain.
In March 2022, Taylor Wimpey announced the first tranche of its share buyback worth £75 million following an excellent business performance in 2021. The company reported a 53.6% rise in total revenue to £4,284.9 million, with a substantial surge of 175.9% in operating profit to £828.6 million. The rising revenue and profitability trend is expected to continue in 2022, as indicated by the forward order book, valued at £2,550 million.
Taylor Wimpey Plc is currently trading at GBX 134.65 on 29 March 2022 at 12:27 PM, with a market cap of £4,827 million.
Vistry Group Plc (LON: VTY)
The UK-based company builds residential properties of various sizes. It has a vast land bank in the country.
For the 12 months ended 31 December 2021, Vistry Group improved its total home completion to 6,551 units (2020: 4,652), resulting in an adjusted profit before tax of £346 million. Following the upbeat business performance, the company increased its dividend pay-out bringing the total dividend to 60p per share in 2021.
Vistry Group Plc was currently trading at GBX 948.60 on 29 March 2022 at 12:28 PM, with a market cap of £2,109.2 million.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
