UK property prices hit all-time high, 5 LSE stocks to buy now

Highlights 

  • According to Rightmove, the national average price of properties in the UK market has hit an all-time high in September.
  • Prices increase by 0.3% or £1,09 to hit a record high of £338,462 in September.

Real estate website Rightmove in a recent report has stated that the national average price of properties in the UK market have hit an all-time high due to scarcity of available properties for sale leading to fierce competition among buyers.

There was a 0.3% increased in the average prices, accounting for £1,09 in the September survey, to hit a record high of £338,462 (US $466,671), reversing a 0.3% drop in early August. According to the new report, the prices are now stabilising as the new record high is just £15 more than the price recorded in July.

Overall, the report stated that despite the slow discontinuation of the temporary tax breaks on property purchases, the housing market has still been able to show some of its upward impetus. Stamp duty is a tax to be paid on house purchases. But it started to get back to the pre-pandemic level in July and the tax break fully expires this month. The goal of the tax cut was to overturn the plunging property sales which started with the pandemic and support the upsurge in property prices as well as some new construction. Price rises were seen in the UK and in other countries as well due to people looking for more spacious properties to comfortably work from home.

The report of the company aligned with a report from the Royal Institution of Chartered Surveyors, which stated that in comparison to pre-pandemic levels, the number of prospective buyers per property had increased by more than double. Properties initially advertised on Rightmove between August 8 and September 11 were covered in the August survey. 

ALSO READ: 5 housing stocks to buy as prices may continue rising

Let’s take a look at some UK real estate stocks, which can be affected by this development.

Belvoir Group PLC (LON: BLV)

Headquartered in Grantham, Belvoir Group plc is a leading UK-based property franchise group with a mCap of £106.28 million. It is listed on the London Stock Exchange since 2012 and is also a constituent of the FTSE AIM All-Share index. Its Earnings per share is 0.13 and its 1-year return is 74.98%. Its year-to-date return is 83.97%. The previous close price of Belvoir Group PLC’s shares was GBX 285.00 as of 17 September 2021.

Property Franchise Group PLC (LON: TPFG)

Headquartered in Bournemouth, Property Franchise Group PLC is a UK-based company which manages real estate properties and has a mCap of £89.72 million. It is on the London Stock Exchange since 2013 and is also a constituent of the FTSE AIM All-Share index. Its Earnings per share is 0.13 and its 1-year return is 36.92%. Its year-to-date return is 46.24%. The previous close price of Property Franchise Group PLC’s shares was GBX 280.00 as of 17 September 2021.

ALSO READ: 3 FTSE 250 stocks to buy amid rising housing prices

LSL Property Services plc (LON: LSL)

Headquartered in London, LSL Property Services plc is a UK-based company has a market capitalisation of £473.22 million, the company is listed on the London Stock Exchange since 2006 and is also a constituent of the FTSE All-Share index. Its Earnings per share is 0.16 and its 1-year return is 109.30%. Its year-to-date return is 53.49%.  The previous close price of LSL Property Services PLC’s shares was GBX 450.00 as of 17 September 2021. The company is engaged in residential property services for tenants, landlords, lenders, and act as a common platform for buyers and sellers.

Safestore Holdings Plc (LON: SAFE)

Headquartered in Hertfordshire, Safestore Holdings Plc’s has a significant market capitalisation of £2,335.93 million. It is listed on the London Stock Exchange since 2007 and is also a constituent of the FTSE 250 index. Its Earnings per share is 0.85 and its 1-year return is 36.54%. Its year-to-date return is 40.00%. The previous close price of Safestore Holdings PLC’s shares was GBX 1,108.00 as of 17 September 2021.

Harworth Group PLC (LON: HWG)

Headquartered in Rotherham, Harworth Group PLC is a UK-based company has a significant market capitalisation of £561.53 million and is listed on the London Stock Exchange since 1994 and is also a constituent of the FTSE All-Share index. Its Earnings per share is 0.08 and its 1-year return is 89.13%. Its year-to-date return is 67.37%.  The previous close price of Harworth Group PLC’s shares was GBX 174.00 as of 17 September 2021.

ALSO READ: Vistry (VTY) & Redrow (RDW): 2 dividend stocks to cash in on housing boom

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