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Highlights
- 2021 was one of the busiest years for UK’s property market since 2007, as per Zoopla.
- One out of every 16 homes possibly changed hands this year despite supply constraints and other roadblocks.
- The annual rate of growth of the housing prices has been exponentially growing due to the increase in demand for houses during the pandemic.
The house prices in the UK saw a massive boost this year, with an annual rise in house prices going up more than 7.1%. According to Zoopla’s latest report, the average cost of a house has gone up by almost £16,000 (US $21,228).
The latest Zoopla house price index stated property transactions reached a peak this year, making 2021 the busiest property market in the last 14 years. The housing market’s total size was around £9.5 trillion, where the average cost of a house is around £240,800.
Despite supply constraints due to excessive demand for more spacious and bigger spaces during the pandemic, one out of every 16 homes have possibly changed hands this year. The UK’s property market hasn’t been this active since 2007. With the highest gross lending (£357 billion) since 2007, the year 2021 is being considered as the strongest year for mortgage lending in last 14 years.
Source: Copyright © 2021 Kalkine Media
The annual rate of growth of the housing prices has been exponentially growing due to the increase in demand for houses and is running at a seven year high at present, jumping up from 3.5% in October 2020 to 6.9%. However, the growth rate is slightly declined after crossing 7% in August and September. The quarterly growth rate has also gone down to 1.2% in October from 2.8% in July.
The average housing price in the UK has gone up by £15,500 in the last one year, and over the last five years, the value of a UK home has gone up from £200,000 to £240,000. The number of houses available for sale are declining as of now but the situation may become better next year as the supply constraints are eased, as per analysts.
According to property website Rightmove, the UK’s housing market is on the way to become less frenetic in 2022 as more homeowners would be willing to sell, however, the buyer demand is expected to remain strong. The market would start bouncing back to normalcy as the balance between buyers and sellers would start getting restored. After peaking at £316 billion in 2021, the gross mortgage lending is expected to drop down to £281 billion in 2022, and then increase again in 2023 to £313 billion.
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Here are 5 UK housing stocks impacted by the housing boom.
Source: Copyright © 2021 Kalkine Media
Belvoir Group PLC (LON:BLV)
Leading property franchise group Belvoir Group plc operates via three property franchises offering residential lettings and sales under the Belvoir, Newton Fallowell, and Northwood brands. The current market cap of the AIM-listed company stands at £95.09 million. It has given a return of 72.06% to its shareholders in the last one year. Belvoir Group plc’s shares were trading at GBX 255.00 at 10:00 AM on 24 December 2021 (GMT).
LSL Property Services plc (LON:LSL)
LSL Property Services plc offers residential property services to buyers & sellers of residential properties, as well as to lenders, landlords, and tenants. The current market cap of the company stands at £454.29 million. It has given a return of 45.02% to its shareholders in the last one year. LSL Property Services plc’s shares were trading at GBX 422.00, down by 2.32%, at 10:05 AM on 24 December 2021 (GMT).
RELATED READ: 2 housing stocks to buy as demand increases for seaside locations
Property Franchise Group PLC (LON:TPFG)
Property Franchise Group PLC manages real estate properties and offers services like residential letting, estate agency, and property management to tenants and landlords. The current market cap of the AIM-listed company stands at £99.65 million. It has given a return of 66.05% to its shareholders in the last one year. Property Franchise Group PLC’s shares were trading at GBX 310.00, down by 0.32%, at 10:06 AM on 24 December 2021 (GMT).
Harworth Group PLC (LON:HWG)
Harworth Group PLC is engaged in brownfield land development and property regeneration. It operates in the North of England and the Midlands. The current market cap of the company stands at £576.09 million. It has given a return of 69.55% to its shareholders in the last one year. Harworth Group PLC’s shares were trading GBX 178.00, down by 0.28%, at 10:05 AM on 24 December 2021 (GMT).
Safestore Holdings Plc (LON:SAFE)
Safestore Holdings Plc is the biggest self-storage group in the UK. The current market cap of the FTSE250-listed company stands at £2,873.00 million. It has given a return of 71.05% to its shareholders in the last one year. Safestore Holdings PLC’s shares were trading at GBX 1,371.00, up by 0.59%, at 10:05 AM on 24 December 2021 (GMT).
