FTSE 100 stocks to watch out for as house prices see the biggest fall

3 min read | December 08, 2022 12:15 AM AEDT | By Abhishek Sharma

FTSE 100 stocks to watch out for as house prices see the biggest fall — Image source: HAKINMHAN, Shutterstock.com

Highlights:

Data from Halifax shows that UK house prices fell 2.3% in November, the largest monthly drop on its index since 2008.

This is the third fall in a row, indicating the current situation of the real estate market in the country.

Amid the rising interest rates leading to higher mortgage rates, the property market has been witnessing a slowdown. Many are deferring their plans to buy a home when the economic situation eases, so property prices have started to fall.

In fact, the prices saw the biggest fall last month in 14 years, when the world was grappling with a financial crisis.

Data from lender Halifax shows that UK house prices fell 2.3% in November, the largest monthly drop on its index since 2008. This is the third fall in a row, indicating the current situation of the real estate market in the country.

According to Halifax, the average house price last month was recorded at £285,579, down from £292,406 in the previous month. Besides, the annual rate of house price growth was also significantly lower at 4.7% against 8.2% in October.

Barring the north-east, all areas of England saw the annual price growth rate slowing. Scotland, Wales, and Northern Ireland also saw a similar trend. Particularly, Wales and the south-west, which became hotspots of price housing price inflation during the COVID-19 pandemic, saw the biggest drop in house prices, according to Halifax. The lender added that the latest data indicates that the "race for space" and increased demand for living in rural areas have receded.

With the latest house prices out, let's explore some London-listed real estate stocks.

Persimmon Plc (LON: PSN)

The British housebuilding company belongs to the benchmark FTSE 100 index. It boasts a market capitalisation of £4,055.41 million, and its EPS stands at 2.47 as of 7 December 2022. The company's stock price has slumped by more than half in the past 12 months. Shares of the company traded at GBX 1,256.00, down 1.10% as of 10:24 am GMT on Wednesday.

Taylor Wimpey Plc (LON: TW.)

The leading British real estate company is also a constituent of the FTSE 100 index. The firm enjoys a market cap of £3,673.26 million and an EPS of 0.06 as of 7 December 2022. Its one-year return currently stands at -37.10%, and the stock was trading 1.01% lower at GBX 102.95 as of 10:25 am GMT on Wednesday.

Berkeley Group Holdings Plc (LON: BKG)

The FTSE 100-listed homebuilder is headquartered in Cobham. Its market cap currently stands at £4,141.20 million, with an EPS of 4.18 as of 7 December 2022. The company's 12-month return currently stands at -16.07%. Shares of the company traded 0.05% lower at GBX 3,808.00 as of 10:29 am GMT on Wednesday.

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.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.