Blue-chip housing stocks mixed even as annual house price growth jumps over 13%

Summary 

  • Heavyweight housing stocks traded mixed in the mid-morning deals
  • The benchmark FTSE 100 oscillated marginally higher as blue-chips cracked
  • Shares of Persimmon and Taylor Wimpey jumped over 2%

The heavyweight housing stocks traded mixed in the mid-morning deals on Tuesday, even after the annual house price growth accelerated to more than 13% in June 2021.

According to the Nationwide House Price Index, the annual growth in the average house prices rose to 13.4% in the reporting month, registering the highest growth rate since November 2004. This was the time when the housing bubble started ballooning, largely driven by the record surge in issuance of credit to subprime borrowers coupled with the massive cross-selling of mortgage-backed securities (MBS) by investment banks across the globe.

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Most of the blue-chip housing stocks were trading with marginal change, in-line with the movement in the benchmark FTSE 100. At 11:23 am BST, the market index was trading at 7,085.51, up 0.18% from the previous close of 7,072.97.

Subsequent to the sub-1% gain in May, the index is seemingly on track to recognise a similar appreciation in the present month. In June 2021 so far, the index has amassed a gain of 0.72%, barring the marginal uptick of 29 June.

As per the estimates of Nationwide Building Society, there has been a worthwhile pick up in the annual house price growth during the April-June quarter with all the major jurisdictions recording a rise. Of the major geographies, Northern Ireland emerged as the strongest performing region followed by Wales, while Scotland and London registered the modest increase in annual growth rate.

Here we take a look at nine FTSE 100 stocks related to construction, household goods, mortgage real estate investment trusts and real estate investment.

  • Shares of Coalville-headquartered residential property developer Barratt Developments Plc (LON: BDEV) rose nearly 2% in the early hours, reacting to the development but trimmed gains as the trading progressed. The stock was hovering 0.71% higher at GBP 708 from the previous close of GBX 703.
  • Shares of the Cobham-based property developer Berkeley Group Holdings Plc (LON: BKG) surged more than 1.5% in the opening deals but retracted the gains within two hours, briefly succumbing to negative territory. The stock was trading at GBX 4,673, up 0.28% from the previous close of GBX 4,660 apiece.
  • Shares of the London-headquartered property developer and investment corporation British Land Company Plc (LON: BLND) slipped slightly into the red after staging a largely similar rally in the opening trade. The stock was trading at GBX 497.90, down 0.06% from GBX 498.20, after the component clocked a gain of 1.81% in morning.
  • Shares of the Dublin-headquartered diversified building materials provider CRH Plc (LON: CRH) managed to hold a major portion of morning gains in the pre-afternoon fixture. The stock was trading at GBX 3,699, up 0.76% from the last close of GBX 3,671.

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  • Shares of the London-based commercial property developer Land Securities Group Plc (LON: LAND) traded marginally higher at GBX 677.20, up 0.30% from the previous close of GBX 675.20. Earlier during the day, the stock soared over 1%.
  • Shares of the York-headquartered house building corporation Persimmon Plc (LON: PSN) gained more than 1%, effectively reversing the loss recognised in the last 3-4 sessions. The stock rallied 2.42% to a day’s high of GBX 3,006 in the wee hours of trading, while it was hovering 1.70% higher at GBX 2,985 from the previous close of GBX 2,935.
  • Other shares that dipped up to 0.50% include Rightmove Plc (LON: RMV) and Segro Plc (LON: SGRO), while the stock of Taylor Wimpey Plc (LON: TW) traded 1% higher after rising over 2.5% in morning hours.

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