HWG, PCA, HRE: Housing stocks to explore amid rising prices

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HWG, PCA, HRE: Housing stocks to explore amid rising prices

 HWG, PCA, HRE: Housing stocks to explore amid rising prices
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Highlights

  • According to property website Zoopla, the average price of a UK home has crossed the £250,000 mark for the first time.
  • The speed of price growth is decelerating and there has been an increase in the number of sellers applying discounts to the houses.
  • While the house prices surged by 9% in the year to March, the growth slowed down to 8.4% in April.

Property prices in the UK are hitting the roof but the speed of price growth is decelerating. According to the property website Zoopla, the average price of a UK home has crossed the £250,000 mark for the first time, reaching £250,200 in April. However, there has been an increase in the number of sellers applying discounts to the houses.

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While the house prices surged by 9% in the year to March, the growth slowed down to 8.4% in April. By the end of 2022, Zoopla anticipated the rate of price to decline even further to around 3%. A price reduction of at least 5% was witnessed for one out of 20 properties in the second half of April.

On average, the prices of these properties came down by 9%, marking a price reduction of £22,500, considering the average UK home prices.

According to Zoopla, the time of waiting for sellers to make a sale also went up. However, the demand for houses still remains greater than the supply. Taking the five-year average into consideration, there has been a decline of 37% in the supply of houses for sale, while the demand has surged by 61% on this measure.

As the cost-of-living crisis is escalating and the market sentiment is changing, the demand for houses is expected to come down. The rate of price growth is declining, representing a slowdown in the housing market.

Let’s look at 3 UK Real Estate managers & developers that investors can keep an eye on in the current scenario.

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  1. Harworth Group plc (LON: HWG)

The shares of the leading British land and property regeneration firm, Harworth Group plc, were down by 1.20% as the market opened at around 8:00 AM (GMT+1) on 30 May 2022, at GBX 165.00. Over the last one year, the company has given its shareholders a return of 15.17% as of 30 May 2022. Harworth Group plc’s current market cap stands at £539.30 million.

 Average UK house prices hit £250,200 in April

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  1. Palace Capital plc (LON: PCA)

The shares of the British property investment firm, Palace Capital plc, were trading at GBX 272.00 as the market opened at around 8:00 AM (GMT+1) on 20 May 2022. Over the last one year, the company has given its shareholders a return of 11.48% as of 30 May 2022. Palace Capital plc’s current market cap stands at £125.91 million.

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  1. Sirius Real Estate Limited (LON: SRE)

The shares of the real estate holding firm, Sirius Real Estate Limited, were up by 0.89% as the market opened at around 8:00 AM (GMT+1) on 30 May 2022, at GBX 113.60. Over the last one year, the FTSE250-listed company has given its shareholders a return of 12.25% as of 30 May 2022. Sirius Real Estate Limited’s current market cap stands at £1,319.85 million.

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