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Highlights
- House prices in the UK saw a new record high for the third consecutive month in April, according to Rightmove.
- Buyers are forced to spend more now as high prices have put the properties in higher stamp duty or tax brackets.
Housing prices in the UK have been touching record highs in the past couple of months. According to the latest figures released by property listing website Rightmove, the rates saw a record rise for the third consecutive month in April, with all regions and market sectors reaching new highs. However, despite the rising prices, properties are now selling faster than ever, two times quicker than in 2019, the website claimed.
While the UK's housing market is booming, buyers now are forced to shell out more money as high prices have put the properties in higher stamp duty or tax brackets, according to property website Zoopla.
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As per the latest analysis, 4.3 million homes in the UK slid into a higher tax bracket during the COVID-19 pandemic. This includes 3.5 million homes in England and North Ireland, which have surpassed the initial £125,000 stamp duty, and 815,000 properties in Scotland and Wales, which have moved over their equivalents of stamp duty, according to the Zoopla research cited by Yahoo.
Gráinne Gilmore, head of research at Zoopla, said that the strong buyer demand had pushed the average price of houses in the UK by about £29,000 since 2020, and it currently stands at £249,700.
Let us take a look at some housing stocks and see how they have been faring.
Taylor Wimpey Plc (LON: TW.)
Taylor Wimpey is a leading home construction company and primarily operates in the UK and Spain. The company recently announced Jennie Daly's succession of Pete Redfern as Chief Executive.
The FTSE 100 constituent has a market cap of £4,555.29 million, and its share price has depreciated by 28.70% over the last one year as of 4 May 2022. Taylor Wimpey's shares were trading at GBX 127.77, down by 1.30%, at 8:45 am GMT+1 on 4 May 2022.
Berkeley Group Holdings Plc (LON: BKG)
The British property developer deals in residential and mixed-use properties in the country and operates several brand names like Berkeley, St George, Berkeley Commercial, etc. It recently acquired the outstanding 50% stake in St William Homes LLP, its joint venture with utility company National Grid for a total cash consideration of £412.5 million.
The company's market capitalisation stands at £4,543.31 million, and its share price has depreciated by 10.61% in the last one year as of 4 May 2022. Berkeley Group Holdings' shares were trading at GBX 4,115 on 4 May 2022 at 8:59 am, down by 1.15%.
Vistry Group Plc (LON: VTY)
Vistry Group is a UK-based real-estate developer that builds residential properties. It reported adjusted revenue of £2,693.6 million for the year ended 31 December 2021, along with an adjusted profit before tax of £346 million. Its housebuilding average sale price for the period stood at £305,100.
The company's market cap currently stands at £1,859.59 million and its shares were trading at GBX 827.50 on 4 May 2022 at 9:00 am. Over the past one year, the share price has depreciated by 33.05%.
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.
