Lens on Persimmon and Barratt Developments as UK House Prices Touch Record High

Summary

  • The average property price stood at £258,204, reporting an 8.2 per cent hike year-on-year for April.
  • The HMRC data for monthly property transactions for the UK home sales witnessed an increase in March 2021.

Average UK house prices have touched a record high in the month of April for the second consecutive month, breaking the previous five-year high. Halifax's monthly house price index (HPI) showed that house prices in April were 1.4 per cent higher compared to the previous month.

The average property price stood at £258,204, reporting an 8.2 per cent improvement year over year for the month of April. All credits go to the change in policy in the  , where the stamp duty holiday was extended till June'21.

Russell Galley, overseeing head of Halifax, said: "House costs in April overshadowed the record high set the prior month as the market kept on holding up its new force. This policy might have urged citizens to secure assets at attractive prices and would have increased disposable income, boosting spending.”

He added that the recent trend is expected to continue until June, which can be a positive viewpoint for housing and rental stocks in the exchange. As demands have been piling up, this scenario can lead to a boom in the housing industry.

Meanwhile, the data of HMRC for monthly property transactions for UK home sales witnessed an increase in March 2021 to their highest-ever level, while data for the month of March from the Bank of England (BoE) revealed that the mortgage borrowing in the country touched £11.8 billion, the strongest month since the start of the records in 1993.

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Amid the jubilant report of the rise in housing prices, let us put our lens to the top house building stocks listed on the London Stock Exchange.

Persimmon PLC (LON: PSN)

Persimmon Plc is a UK-based holding organisation. The company is into the business of house building within the nation. It offers a wide choice of homes from studio lofts to family homes in roughly 380 localities under the Persimmon Homes brand.

The company constructs homes under the brand name of Charles Church and aims on reasonable housing, selling them under Westbury Partnerships. The Space4 business works an off-site fabricating plant producing panels, lumber outlines etc. The company has delivered a 5.6% annual earnings growth over the past five years.

The share of the company was hovering at GBX 3,175.00 at 15:37 PM GMT+1 with a market cap of £10.14 billion. It has given a return of 38.42 per cent in the last one year.

Also Read: Persimmon plc (LON: PSN) releases robust performance with strong housing demand

Barratt Developments PLC (LON: BDEV)

Barratt Developments plc is into housebuilding and business improvement business in Great Britain. The company focuses on providing homes to first-time owners, offering a scope of environment-friendly properties across England, Scotland, and Wales.

Wilson Bowden Developments is the company's business improvement arm focusing on retail, relaxation, office, modern, and blended-use plans. The Wilson Bowden Developments ranges from single destinations to current turns of events, office stops, and significant town community recovery projects.

The share of the company was hovering at GBX 779.80 at 15:39 PM GMT+1 with a market cap of £7.94 billion. It has given a return of 46.95 per cent in the last one year.

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