The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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U.K. housebuilding grows at fastest rate in a decade as construction sector powers on: U.K. housebuilding accelerated at its fastest pace for more than a decade in July.
Construction body sees industry adding about £11 billion to economy: The Construction Products Association will forecast that the industry will grow about 10% and add about £11 billion to the economy over the next two years.
Raymond Mould returns to build portfolio of U.K. rented homes: Veteran property entrepreneur Raymond Mould is to launch a company that will invest in privately rented homes, his first step back into the market since he sold his previous company, London & Stamford.
The cost of renting a home in London is now double that in the rest of the UK, a new survey has found, pushing the capital "beyond the boundary" of what is affordable as wages struggle to keep up with rent rises.
Russian property tycoons with a home in London have made record returns on their investment, thanks to a combination of the capital’s recent housing market boom and a weakening rouble. The value of a luxury property in London has appreciated by 102.7pc over the last five years for Russian homeowners as the number of roubles to the pound continues to increase, according to a new report by real estate agents, Knight Frank. Russian investors have capitalised on a 71pc rise in prime central London house prices, the strong pound and the rouble’s falling star. The rouble has weakened by a third over the last 18 months, due to tensions in the Ukraine. In comparison, a US investor who bought in London in 2009 made 95.4pc, while a British buyer made a 69pc return, due to the comparatively strong pound, the study found
London house prices up £43,115 in six months as market soars: The price of an average house in London has risen by £43,115 in the first six months of this year alone, according to astonishing figures from Zoopla, more than the annual salary of an average electrical engineer.
Rich overseas students outbid London’s bankers in a race to rent London’s luxury pads: Untidy bedsits and cramped accommodation are normally associated with student life, however in central London’s best addresses, where weekly rents can top £1,000 per week, an elite of highly-affluent, foreign under-graduates are renting luxury apartments.
Londoners face a 36% rise in stamp duty as homes are set to hit £500,000 London home-buyers could face a 36% jump in their stamp duty bill in the next two months as the average house price in the Capital breaches the 4% property tax threshold. The cost of the average London dwelling is rapidly approaching the £500,001 mark, at which point the stamp duty banding changes from 3% to 4% on the purchase price of the house. The value of a typical home in the Capital rose 20% over the year to May and is now valued at £492,000. Sitting within the 3pc stamp duty banding this would cost the buyer £14,760 in tax.
Nice rise today. Deutsche Bank have reiterated their target price of 2877
forward EV = 4279 / forward PBT (assuming same growth) = 8 forward PER (using diluted EPS) = 2288 / 252 = 9 Very high yield of almost 8% too Share price barely moved year on year despite a large 34% rise in EPS and 40% rise in PBT. Surprising! Looks like a real opportunity this...
Agree and of course Berkeley are much less reliant on the Help to Buy Scheme than other housebuilders:- "Whilst the Government's Help to Buy scheme has been helpful in bringing home ownership to within the reach of many more people, it has had limited benefit to Berkeley as a whole due to the proportion of its sales which are off-plan. On the 17 schemes where qualifying properties were available, it has supported some 36% of sales in the year, a total of 159 sales over the last twelve months" So only 159 sales out of a total of 3,742 - just over 4%. Housing demand in London and the southeast appears to be strong and the outlook for BKG very positive:- "With cash due on forward sales now approaching £2.3 billion and estimated gross margin in its land holdings now in excess of £3 billion"
Have just read that Numis have upgraded BKG from hold to buy, because their share are "too cheap". I rest my case.
Six months ago everybody loved housebuilders. Now they seem to hate them. Talk of cutting the Help to Buy scheme and raising ineterest rates, plus the significant rises already seen in the sector have provoked a sell off. This, in my view, is a huge error. It is possible that profit margins may be tighter in future if the heat comes out of prices, but demand for housing is way behind supply and governments of whatever colour are going to have to sanction a growth in housebuilding over the next 5-10 years or risk the anger of the population, especially those who wish to own their own home. Consequently housebuilders, especially those with good land stocks are going to be pretty busy in the mid term and profits will be driven my increased volumns rather than silly prices. Yields for a number of companies in this sector look very good and sustainable (Persimmon/Galliford/Kier) so there are mid term opportunities here for income seekers. P/es are a tough frothy for some, but Berkeley looks cheap at 10. Oversold, the only question is how much lower do we want them to go before topping up ?
Results · Basic earnings per share increased by 38.6% to 221.8 pence (2013: 160.0 pence) · Pre-tax return on equity of 27.5% (2013: 22.4%) · Net cash of £129.2 million (April 2013: net cash of £44.7 million) · Net asset value per share up 5.6% to 1,065.6 pence (April 2013: 1,009.1 pence) · Dividends of 149 pence per share (£195.2 million) paid to shareholders in the year http://www.investegate.co.uk/berkeley-grp-hlds--bkg-/rns/final-results/201406180700098670J/
Released yesterday "Berkeley Group today becomes the first British housebuilder to be awarded the Queen's Award for Sustainable Development twice" http://www.berkeleygroup.co.uk/index.cfm?articleID=5656 Interesting "The Berkeley Group will shortly be announcing a set of new business commitments as part of its rolling 10 year plan."
Stand by for 2800.
that does assume that the 2nd interim dividend does not rise beyond 59p; I believe it will - if the 2nd divi also rose to 90p that woudl give a total divi of 180p/1600 = circa 7% which would not be shocking as gsk pay 5% and this company has some cracking prospects. I do note that although Berkeley stated the 90p dividend way in advance, last year an interim ex-dividend date was 20th March and payment date 19th April, then we have august/september and december/january's divis; so an announcement will be made soon regarding the next interim dividend to be paid and how much so we shall see - i predict 80-90p and then of course there is another dividend payout in september and they mots certainly will be paying out but they are keeping their cards close to their chests as to what the payment is and when the x-dividend date is to avoid carpet baggers
Is like to ask which is right regarding dividend & yield for Berkeley Group Holdings. The full year currently stands at 90p ( paid 17/1/14) & 59p(27/9/13) = 149p. That then represents a 5.8% dividend. Right? tools.morningstar.co.uk/uk/stockreport/default.aspx?SecurityToken=0P000090RF]3]0]E0WWE$$ALL
brokers recommendation today upped to 2587 by Deutsche up from 2358 on 16th december, so they have stuck 230p on the forecast. liberium capital forecast 2634 in October and have stuck to it. other brokers panmure gordon, HSBC, UBS Davy and Jefferies forecast, 2200, 2235, 2250, 2252 and 2018 respectively yet still large traders appear to disagree with brokers forecasts with one trade at 1635 gong through at £934.82k i do wonder what those brokers tell their clients - presumably the entity that bough £934k didn't take their advice or the advice they were given perhaps verbally over the phone was different
raging bull is back
shares aren't doing too bad for an ex-dividend stock - 3.3% yield currently and that's only based on this 1st interim dividend the biggie is yet to come later this year
2700 seems to be a bit of a barrier currently but this share shows no signs to dipping down to brokers forecasts of 2400-2500 ish
Good article, I think you are right certainly when the new flats just outside the city of London, at tower Bridge/Wapping are built, i don't think many of the purchasers will need any assistance stumping up the cash
Just caught this article from UK builders, regarding help to buy scheme. Though as BKG is in Surrey & London it would not feel the real effects... http://www.standard.co.uk/business/business-news/end-of-help-to-buy-could-crush-housing-boom-warn-builders-9055491.html
Going to buy £5k worth sometime tomorrow, and maybe £5k into Threadneedle Global Equity fund very soon. Does anyone have an interest in any Asian OEIC's like the Newton fund that offers 5.2%? Thanks Scott