Persimmon, Bellway: Stocks to watch as housing market sees a surge in listings

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Persimmon, Bellway: Stocks to watch as housing market sees a surge in listings

 Persimmon, Bellway: Stocks to watch as housing market sees a surge in listings
Image source: Nopparat Khokthong, Shutterstock.com

Highlights

  • For the first time in almost a year, the number of new houses being listed for sale has risen in March.
  • The Royal Institute of Chartered Surveyors (RICS) revealed that 8% of property professionals reported a rise in the volume of fresh listings.

For the first time in almost a year, the number of new houses being listed for sale has risen in March 2022, as buying demand remained higher than supply despite many hurdles, such as the pandemic slowdown and the cost-of-living crisis, potentially taking some of the heat out of a surge in house prices, according to surveyors.

The latest residential market survey from the Royal Institute of Chartered Surveyors (RICS) revealed that 8% of property professionals reported a rise in the volume of fresh listings. A net balance of 9% of respondents reported a rise in new buyer inquiries for the month. Experts said that it was for the first time in the last two years that the demand and supply for properties were seen so closely aligned.

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According to RICS, 74% of its member saw a rise in house prices in March, easing off from February’s revised 78% and almost identical to the average seen in the last one year.

Let us look at 3 housing stocks that may get impacted by the recent development.

Persimmon Plc (LON: PSN)

UK’s leading housebuilding company Persimmon Plc is engaged in constructing houses ranging from as high as executive family homes to small studio apartments, under three different brands that are Persimmon Homes, Westbury Partnership, and Charles Church. The company has recently signed Department for leveling up, Housing and Communities developer pledge to remove the cladding and remediating fire safety issues in buildings over 11 meters and is expected to spend around £75 million in this regard.

With a market cap of £6,819.98 million, the FTSE 100-listed company’s share value has depreciated by -32.81% over the last one year and its year-to-date return stands at -25.18% as of 14 April 2022. Persimmon Plc’s shares were trading at GBX 2,141.00, up by 0.23% at 8:05 AM (GMT), as of 14 April 2022.

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Bellway Plc (LON: BWY)

Bellway Plc is engaged in building houses and residential properties in Newcastle, UK with operations across 19 trading divisions in Scotland, England, and Wales. The company announced that it has agreed to a voluntary pledge with Department for leveling up, Housing and Communities in relation to historical fire safety issues on buildings.

With a market cap of £3,120.20 million, the FTSE 250-listed company’s share value has depreciated by -30.88% over the last one year and its year-to-date return stands at -24.13% as of 14 April 2022. Bellway Plc’s shares were trading at GBX 2,523.00, down by 0.16% at 8:05 AM (GMT), as of 14 April 2022.

The number of new houses being listed for sale has risen in March

2022 Kalkine Media®

Countryside Properties Plc (LON: CSP)

Countryside Properties Plc is a housebuilding and urban regeneration company with operations in the Southeast of England and London, with a presence in the Northwest of England. The company announced that it would conduct a review of all its site operations and has reported a decrease in adjusted revenue to £658.6 million in H12022, from £755.0 million in H12021. Its adjusted operating profit stood at £45.6 million in H12022, down from £78.6 million in H12021. 

With a market cap of £1,266.14 million, the FTSE 250-listed company’s share value has depreciated by -51.95% over the last one year and its year-to-date return stands at -44.84% as of 14 April 2022. Countryside Properties Plc’s shares were trading at GBX 246.60, down by 1.44% at 8:05 AM (GMT), as of 14 April 2022.

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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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