TPFG, HWG, SAFE- Is it the right time to invest in these stocks?

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TPFG, HWG, SAFE- Is it the right time to invest in these stocks?

As per the recent RICS report, UK house prices have been skyrocketing lately, hitting their fastest rate in April 2022 since June 2021.
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Highlights

  • UK house prices have been skyrocketing lately, hitting their fastest rate since June 2021 in April 2022.
  • The disparity between the surveyors reporting increasing prices and those reporting a decline has gone up from +74 percentage points in March to +80 in April.
  • BoE has been raising the interest rates, which impacts mortgage lending and raises the cost of debt, thus affecting the homebuyers.

UK house prices have been skyrocketing lately. They hit their fastest rate since June 2021 recently in April 2022. The demand for homes has been exceeding the supply, leading to a significant rise in prices. However, with the worsening of the inflationary situation, the expectations for future price rises have been going down.

According to the recent report by The Royal Institution of Chartered Surveyors (RICS), the disparity between the surveyors reporting increasing prices and those reporting a decline has gone up from +74 percentage points in March to +80 points in April. The mortgage lender Nationwide had also released its results earlier, as per which the yearly rate of the increase in house prices went down from the 18-year high of 14.3% to 12.1% in March. But according to RICS, the percentage anticipating the rents to increase during the subsequent three months would peak at a level that hasn’t been witnessed since the records have started.

Amid the cost-of-living crisis spiralling in the UK, the Bank of England (BoE) has warned that the inflation levels may hit 10% by the end of 2022. BoE’s Monetary Policy Committee (MPC) has been raising the interest rates in response to the soaring inflation levels, recently increasing them to a 13-year high of 1%. Interest rates impact mortgage lending and raise the cost of debt, thus affecting the homebuyers.

Amid this chaos, investors are looking for stocks to make the maximum possible gains. Let’s look at 3 UK housing stocks that investors may keep an eye on amid the soaring prices.

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                             UK house prices soaring amid cost-of-living crisis

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Safestore Holdings Plc (LON: SAFE)

The shares of the leading self-storage company, Safestore Holding plc, were down by 1.80% at GBX 1,034.00 at the market open at around 8:00 AM (GMT+1) on 12 May 2022. The FTSE250-listed company has given its shareholders a return of 13.69% over the last one year. The current market cap of the company stands at £2,220.01m as of 12 May 2022.

Harworth Group PLC (LON: HWG)

The shares of the land and property regeneration business, Harworth Group plc, were trading at GBX 156.50 at the market open on 12 May 2022. The company has given its shareholders a return of 15.93% over the last one year. The current market cap of the company stands at £505.06m as of 12 May 2022.

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Property Franchise Group plc (LON: TPFG)

The shares of the real estate properties administrator, Property Franchise Group plc, were trading at GBX 305.00 at the market open on 12 May 2022. The company has given its shareholders a return of 22.98% over the last one year. The current market cap of the company stands at £97.73m as of 12 May 2022.

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.

Tags: housing stocks, real estate, inflation, interest rates

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