Why are these 5 FTSE housebuilding stocks trending lower today

Summary

  • The housing price in the UK rose by 0.7% in the month of July, which is the fourth consecutive month of the property price increase.
  • Stocks of Barratt Developments Plc, Countryside Properties, Bellway, Vistry Group, Berkeley Group are trading lower.
  • The record rise in price is attributed to a shortfall in homes in the UK, and peoples rush to buy homes to take advantage of the tax break deadline.

The housing price in the UK rose by 0.7% to £338,447 between mid-June to early July, which is the fourth consecutive month of rising property prices and the largest price jump since 2007, as per the figures released by the property listing website Rightmove.

June month saw a rise in property prices and a record number of house sales as people rushed to buy houses to take advantage of the tax break deadline, which was 30 June. Secondly, a shortfall of around 225,000 homes for sale pushed the asking prices to a record high. In the last six months, as per Rightmove’s data, the prices have moved up by 6.7%.

Let us explore five housebuilding stocks with high growth potential and explore their share price performance:

1. Barratt Developments Plc (LON: BDEV)

FTSE 100 listed company operates in housebuilding by acquisition and development of land and also offers commercial development under the Wilson Bowden Developments brand in the United Kingdom.

The company had informed that it delivered 17243 homes during the year ended 30 June 2021, and its pretax profit is anticipated at the top range of market expectations and holds a strong balance sheet with net cash of £1,315 million, which is much ahead of the previous guidance.

Barratt Plc shares trade at GBX 678.8, down by 1.25% on 19 July at 8.36 GMT+1, with a market cap of £6.92 billion. In the last one year, the stock has given 25.07% returns to its shareholders.

2.Countryside Properties Plc (LON: CSP)

The company operates in the housebuilding and urban land redevelopment segment in the United Kingdom. The company’s stock is a constituent of the FTSE 250 Index. As per the company, it is the market leader in mixed-tenure communities in partnership with housing associations.

The company reported a 42% rise in adjusted revenue at £755 million and operating profits of £24.7 million in six months ended 31 March 2021. The company’s net cash stands at £106 million, and a net investment of £100 million is expected during the second half of the year.

Shares of Countryside Plc trades at GBX 496, down by 1.49% on 19 July at 08.40 GMT+1, with a market cap of £2.6 billion. The stock has given 34.78% returns to its shareholders in the last one year.

3.      Vistry Group Plc (LON: VTY)

It is a leading housebuilding company in the United Kingdom, and its stock is a constituent of the FTSE 250 Index. The company maintained its 5-star HBF Customer Satisfaction Rating for 2020.

During the first half of 2021, the company completed 3126 homes (H1 20: 1,235), and the group is expected to deliver 6500 units for the entire year. The forward sales position of the company is £2.7 billion, and the net cash position stands at £32 million as of 30 June 2021.

Shares of Vistry Plc trades at GBX 1,139, down by 1.43% on 19 July at 08.40 GMT+1, with a market cap of £2.56 billion. The stock has given 60.54% returns to its shareholders in the last one year.

4. Bellway Plc (LON: BWY)

The Newcastle-based property developer and housing developer has reported a record investment in land, providing a solid platform for growth and margin recovery in future years. The company has recently received a five-star homebuilder recognition in the HBF Customer Satisfaction survey.

The company is expected to deliver over 10,000 homes in the current financial year with an average selling price of over £300,000. The company’s order book rose by 20.5% at £1,889 million, and its net cash on the balance sheet stands at £408 million as of 6 June 2021.

Bellway Plc shares trade at GBX 3,182, down by 1.37% on 19 July at 08.40 GMT+1, with a market cap of £3.97 billion. In the last one year, the stock has given 21.42% returns to its shareholders.

5. Berkeley Group Holding Plc (LON: BKG)

The Cobham-based company engages in residential property development, delivered 3257 homes in the year ended 30 April 2021, and supported close to 28,000 jobs per annum through its supply chain.

Ten new sites were acquired by the company during the year and reported a 2.9% rise in pretax profits at £518.1 million. The company also re-affirmed that it is committed to £281 million per annum returns to its shareholders.

Berkeley Group Holding Plc shares trade at GBX 4,596, down by 1.12% on 19 July at 08.36 GMT+1, with a market cap of £5.65 billion. In the last one year, the stock has given 3.78% returns to its shareholders.

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