House price growth slows down in June: Three FTSE 100 stocks to eye

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House price growth slows down in June: Three FTSE 100 stocks to eye

 House price growth slows down in June: Three FTSE 100 stocks to eye
Image source: Andrey_Popov, Shutterstock.com

Highlights:

  • Housing prices in the UK saw sluggish growth in June, hinting at the slowdown in the housing market.
  • The latest data from the ONS shows the average house price in June reached £286,000.

House prices in the UK witnessed a sharp slowdown in June, as rising interest rates forced many to postpone their house-buying plans. The latest data by the Office for National Statistics (ONS) shows that house prices in the country rose by 7.8% yearly in June, a pullback from 12.8% in May.

Official figures showed that the average house price in June was £286,000 in June, £20,000 higher than in June 2020. The latest data indicates the weakest growth in price since July 2021. 

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The average prices have now hit record levels in England, Wales and Scotland. In England, the prices rose 7.3% to £305,000 year-on-year, while the growth touched 8.6% at £213,000 in Wales. Scotland saw a rise of 11.6% as prices climbed to £192,000.

Meanwhile, separate data from the ONS revealed private rental prices that tenants pay jumped by 3.2% in the year to July, slightly higher than 3% in June.

Let us now explore some London-listed real estate stocks and see how they have been faring amid the rising prices.

Persimmon Plc (LON: PSN)

Leading housebuilding firm, Persimmon was trading at GBX 1,802.50, down 2.52% as of 12:23 pm GMT+1. The company has reported strong demand for its new homes and also provided a positive outlook for investors despite the indications of a slowdown in housing demand. With a market cap of £5,904.19 million, the stock has slipped over 37% over the past year, and its earnings per share are 2.47.

Taylor Wimpey Plc (LON: TW.)

Taylor Wimpey is another leading British home construction firm listed on the FTSE 100 index. Over the past year, the stock has dipped over 30%. With a market cap of £4,340.81, the stock was 1.87% down at GBX 120.60 as of 12:48 pm GMT+1 on Wednesday. Its Relative Strength Index (RSI) stood at 42.33.

Rightmove Plc (LON: RMV)

The company runs UK's largest online real estate portal. In the first six months of 2022, it reported a revenue of £162.7 million, 9% higher than H12021. The operating profit climbed 6% to £121.3 million. RMV holds a market cap of £5,331.69 million and was trading at GBX 639.60, up 0.31% as of 12:54 pm GMT+1 on 17 August.

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.

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