Highlights
- Housing market slows but prices expected to rise, according to RICS.
- Residential property sales fall in August for the second month in a row.
The latest findings of the RICS UK Residential Market Survey showed that new buyer enquiries have fallen for the second time in a row in the month of August. Following the July reading of -9%, the net balance of -14% of the respondents said that they had seen even less house hunters. Additionally, a net balance of -18% of the respondents reported a fall in the agreed sales at the same time.
Looking forward, optimism has been seen in respondents about the prospects of the market, with the sales being anticipated to stabilise in the next three months to a net balance of +4%. Over the next year, modest growth is expected, with +7% net balance. Considering the responses, the most positive sale expectations over the next year are across London, Northern Ireland, and the Southeast of England.
With a net balance of -37%, yet another fall has been reported in the new listings. In the last nine months, new listings have been in the negative territory in eight. In addition to this, stock levels on agent’s books have dropped down to 38 in August, from an average of 42 homes per branch at the start of the year, thus hitting record lows. Let us look at 5 FTSE listed stocks that will be affected due to the development:
Belvoir Group PLC (LON: BLV)
Headquartered in Grantham, Belvoir Group plc is a leading UK-based property franchise group. The company operates via three property franchises offering residential lettings and sales under the Belvoir, Newton Fallowell, and Northwood brands. With a market capitalisation of £95.45 million, the company 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 62.31%. Belvoir Group PLC’s shares were trading at GBX 265.00, up by 2.86%, at 1:11 PM on 9 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. It offers services like residential letting, estate agency, and property management to tenants and landlords under its brands which include CJ Hole, Ellis & Co, and Ewemove etc. With a market capitalisation of £97.41 million, the company is listed 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 64.32%. Property Franchise Group PLC’s shares were trading at GBX 303.00 at 1:17 PM on 9 September 2021.
LSL Property Services plc (LON: LSL)
Headquartered in London, LSL Property Services plc is a UK-based company which offers residential property services for lenders, tenants, landlords, and buyers & sellers of residential properties, and. Its operations can be classified into three segments, which are Estate Agency, Financial Services, and Surveying & Valuation Services. With a market capitalisation of £497.40 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 113.64%. LSL Property Services PLC’s shares were trading at GBX 470.00, down by 0.42%, at 1:23 PM on 9 September 2021.
Safestore Holdings Plc (LON: SAFE)
Headquartered in Hertfordshire, Safestore Holdings Plc is the largest self-storage group across the UK, and second largest across Europe. With a significant market capitalisation of £2,348.58 million, the company 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 43.83%. Safestore Holdings PLC’s shares were trading at GBX 1114.00, up by 0.45%, at 1:34 PM on 9 September 2021.
Harworth Group PLC (LON: HWG)
Headquartered in Rotherham, Harworth Group PLC is a UK-based company operating as a brownfield land developer and property regenerator in the North of England and the Midlands. With a significant market capitalisation of £514.73 million, the company 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 66.15%. Harworth Group PLC’s shares were trading at GBX 159.50, down by 0.23%, at 1:40 PM on 9 September 2021.
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