2 FTSE 100 Homebuilding Stocks in Focus as January Average Housing Prices Fall

The Office for National Statistics (ONS) announced the average UK housing prices in January fell by £1,000 to £249,000 after touching a record high of £250,000 in December. However, the latest housing price data still reported a £17,000 increase from its January 2020 figures.

Moreover, the UK’s average house prices growth rate stood at 7.5 per cent in the last 12 months to January, lower than an 8 per cent growth rate in December 2020 due to lockdown related restrictions and the uncertainty over the duration of a stamp duty holiday.

Region-wise, England’s annual average house prices rose by 7.5 per cent to £267,000, while Wales witnessed a 9.6 per cent growth to £179,000. Meanwhile, Scotland’s annual prices grew by 6.9 per cent to £164,000, and Northern Ireland’s rose by 5.3 per cent to £148,000.

Economists said while the housing price growth rate declined in January after being on a consecutive upward climb since July 2020, it still experienced a mini boom in the month.   

Also Read: How Housing Stocks Reacted to Halifax Report of Fall in Prices

Here we take a look at 2 FTSE-listed homebuilding and construction stocks with a five-year average dividend yield of over 2 per cent:

 

1. Ferguson PLC (LON: FERG) 

FTSE 100-listed housing company Ferguson announced its half-year results on 16 March for the period ended 31 January, showing a 4.2 per cent increase in the revenues to US$10.31 billion from a year ago.

The company also announced its interim dividend rose to 72.9 cents per share and set for a May 2021 payout. CEO Kevin Murphy said the topline growth was due to managing the firm’s costs despite facing pandemic-related challenges.

(Source: Refinitiv, Thomson Reuters)

The company’s shares were trading at GBX 8,596.00, down by 0.02 per cent as of 24 March at 13:05 HRS GMT+1, while the broader index FTSE 100 stood at 6,681.10, down by 0.27 per cent.

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