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

3 min read | August 17, 2022 06:36 AM PDT | By Abhishek Sharma

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.

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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