Two of the UK’s biggest house builders are set for inclusion in the FTSE 100 next month as the property market continues to recover apace.
Two house builders whose shares have soared in the past year are expected to be included in the FTSE 100 as Britain’s housing boom continues apace.
The index of Britain’s biggest companies is likely to include Barratt Developments and Taylor Wimpey when it undergoes a reshuffle early next month, demonstrating a strong sign of recovery in the UK property market.
The groups’ closing share prices will determine promotion on March 6th 2014, but their remarkable post-recession recovery is standing them in good stead.
Barratt Developments currently has a market value nearing £4.3 billion, which is its highest since autumn 2007, while Taylor Wimpey’s £4.2 billion market capitalisation was last witnessed in early 2008.
The UK’s biggest house builders have watched their share prices outstrip FTSE indices as high demand, high construction volumes and more investment contribute to a resurgent property market.
According to analysis by IBTimes UK, Barratt Developments shares are 106% higher than they were around fourteen months previously, at 421.20p, and Taylor Wimpey’s share price is 92% higher than in January 2013 at 126.50p, below its pre-crisis peak of 518p.
Barratt Development’s share price is also well below its pre-crisis peak of 1,266p, indicating the stock has plenty of growth potential in the near future.
The analysis revealed that the share prices by revenue of the UK’s five biggest house builders – Barratt, Taylor Wimpey, Persimmon, Berkeley and Bellway – have leapt ahead of the wider markets’ performance since the recovery of the construction sector and overall economy began in 2013.