Safestore, Property Franchise: Stocks you may buy amid rising house prices

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Safestore, Property Franchise: Stocks you may buy amid rising house prices

 Safestore, Property Franchise: Stocks you may buy amid rising house prices
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Highlights 

  • The average UK house prices have been going up for seven consecutive months, crossing the £260,000 mark in February 2022 for the first time.
  • Increasing by 1.7% in February on a monthly basis, the average UK house prices are 20% higher now as compared to the February 2020 prices.

The UK housing boom in 2021 has continued into 2022 as well. The month of January saw the greatest yearly start for the UK housing market since 2005, according to the UK’s biggest building society Nationwide. In January, the average house price in the UK stood at £255,556, consecutively rising for six months.

The price growth has increased for the seventh consecutive month in February 2022, rising from 11.2% in January to 12.6%, owing to the shortage of houses for sale in February. This has made it difficult for Brits to climb the property ladder, while making the situation even worse for first time buyers.

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As per the Nationwide House Price Index, the £260,000 mark has been crossed by the average UK house prices for the first time, marking a price hike of £29,162 over the last one year. Increasing by 1.7% in February on a monthly basis, the average UK house prices are 20% higher now as compared to the February 2020 prices, after which the UK was hit by the Covid wave.

According to analysts, the price boom was expected to stabilise in 2022, but contrary to their expectations the housing market is still buoyant. With inflation recently touching a record high level of 5.5% in January, borrowing costs have also been increasing, further squeezing the budget of households.

Let’s look at 5 FTSE real estate stocks that may get affected by the soaring prices.

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Belvoir Group PLC (LON: BLV)

The market cap of the British property franchise group, Belvoir Group plc, stands at £87.64 million as of 2 March 2022. Belvoir Group plc’s shares closed at GBX 242.50, up by 3.19%, on 2 March 2022.

The group has provided its shareholders with a return of 46.08% over the past one year as of 2 March 2022, however, it hasn’t been able to deliver in 2022 and its year-to-date return stands at -7.44%.  

LSL Property Services plc (LON: LSL)

The market cap of the UK’s second-largest estate agent chain, LSL Property Services plc, stands at £422.74 million as of 2 March 2022. LSL Property Services plc’s shares closed at GBX 402.00, up by 3.34%, on 2 March 2022.

The surveying services company has given a return of 53.44% to its shareholders over the last one year as of 2 March 2022, however, its year-to-date return stands at -1.95%.

Property Franchise Group PLC (LON: TPFG)

The market cap of the British real estate properties manager, Property Franchise Group PLC, stands at £105.74 million as of 2 March 2022. Property Franchise Group plc’s shares closed at GBX 330.00, on 2 March 2022.

The company has been performing well and has provided a return of 70.19% to its shareholders over the past one year as of 2 March 2022, while its year-to-date return stands at 5.68%.

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Harworth Group PLC (LON: HWG)

The market cap of the British land and property regeneration firm, Harworth Group PLC, stands at £563.15 million as of 2 March 2022. Harworth Group plc’s shares closed at GBX 174.50, up by 2.65%, on 2 March 2022.

The company has provided a return of 46.64% to its shareholders over the past one year as of 2 March 2022, however, its year-to-date return stands at -3.06%.

UK housing stocks to get impacted due to rising house prices

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Safestore Holdings Plc (LON: SAFE)

The market cap of the Europe’s second biggest self-storage group across the UK, Safestore Holdings Plc, stands at £2,647.95 million as of 2 March 2022. Safestore Holdings plc’s shares closed at GBX 1,256.00, up by 0.24%, on 2 March 2022.

The FTSE250-listed company has provided a return of 58.79% to its shareholders over the past one year as of 2 March 2022, however, its performance was down this year with its year-to-date return standing at -10.86%.

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