| Taylor Wimpey PLC (GB0008782301) | |||
1,15 GBXStand (close): 03.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 19.04.25 09:01:19 | Should You Think About Buying Taylor Wimpey plc (LON:TW.) Now? |  |
| Taylor Wimpey plc (LON:TW.), is not the largest company out there, but it saw a decent share price growth of 11% on the LSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Taylor Wimpey’s outlook and valuation to see if the opportunity still exists. We've discovered 3 warning signs about Taylor Wimpey. View them for free. What's The Opportunity In Taylor Wimpey? According to our valuation model, Taylor Wimpey seems to be fairly priced at around 9.5% below our intrinsic value, which means if you buy Taylor Wimpey today, you’d be paying a reasonable price for it. And if you believe the company’s true value is £1.25, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Taylor Wimpey’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. See our latest analysis for Taylor Wimpey What does the future of Taylor Wimpey look like?LSE:TW. Earnings and Revenue Growth April 19th 2025 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Taylor Wimpey's earnings over the next few years are expected to increase by 88%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? TW.’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you’ve been keeping an eye on TW., now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Story Continues If you'd like to know more about Taylor Wimpey as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 3 warning signs we've spotted with Taylor Wimpey (including 1 which is a bit concerning). If you are no longer interested in Taylor Wimpey, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 02.04.25 05:51:43 | Pulling back 5.0% this week, Taylor Wimpey's LON:TW.) three-year decline in earnings may be coming into investors focus |  |
| In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Taylor Wimpey plc (LON:TW.) shareholders, since the share price is down 19% in the last three years, falling well short of the market return of around 14%. Shareholders have had an even rougher run lately, with the share price down 11% in the last 90 days. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report. After losing 5.0% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Taylor Wimpey saw its EPS decline at a compound rate of 26% per year, over the last three years. This fall in the EPS is worse than the 7% compound annual share price fall. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. You can see how EPS has changed over time in the image below (click on the chart to see the exact values).LSE:TW. Earnings Per Share Growth April 2nd 2025 It might be well worthwhile taking a look at our freereport on Taylor Wimpey's earnings, revenue and cash flow. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Taylor Wimpey's TSR for the last 3 years was 3.3%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! A Different Perspective Taylor Wimpey shareholders are down 12% for the year (even including dividends), but the market itself is up 10.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Taylor Wimpey better, we need to consider many other factors. For instance, we've identified 3 warning signs for Taylor Wimpey (1 doesn't sit too well with us) that you should be aware of. Story Continues If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 02.04.25 04:00:00 | Britain’s soaring population needs houses. Buy this company yielding 8pc | |
| Taylor Wimpey house front face Questor is The Telegraph’s stockpicking column, helping you decode the markets and offering insights on where to invest. Although it is extremely difficult for any investor to look beyond the present economic difficulties – anaemic GDP growth, sticky inflation and elevated interest rates – history suggests that today’s woes will almost certainly prove to be temporary. Indeed, investors often overlook the fact that the economy is cyclical. Just as booms do not endure, busts have never proved to be perpetual. Investors who are able to use the inherent peaks and troughs of the economy’s performance to their advantage are likely to benefit over the long run. Today’s downbeat near-term economic outlook is extremely likely to give way to more upbeat conditions over the long run. That means buying high-quality companies at low prices could prove to be a shrewd move. For example, FTSE 100 housebuilder Taylor Wimpey currently trades on a price-to-book ratio of around 0.9 after falling by 34pc over the past six months. This suggests it offers excellent value for money and, while the company could yet experience further difficulties in the short term, its operating environment is highly likely to materially improve over the coming years. Inflation, for instance, is forecast to decline to the Bank of England’s 2pc target over the medium term. This should allow the central bank to further loosen monetary policy, making houses much more affordable for prospective buyers. Alongside the positive impact on wage growth and economic expansion typically caused by monetary policy easing, this should prompt higher demand for new homes and an increasingly upbeat outlook for the firm’s bottom line. Allied to this, the UK continues to have a chronic shortage of new homes. The most recent data shows that new housing starts in the year to September 2024 amounted to just over 124,000. Although the Government is seeking to boost the number of new homes built in the UK, even a material rise is unlikely to keep pace with population growth. Indeed, the UK’s population is forecast to rise by 490,000 people per year between 2022 and 2032. Taylor Wimpey is well placed to capitalise on an increasingly buoyant industry outlook via a land bank that consists of 79,000 plots. It also has the financial means to invest for long-term growth, while overcoming the present period of economic uncertainty. Its latest annual results, released in February, showed that its net cash position currently stands at roughly £565m. Certainly, the firm’s broader financial performance remained disappointing amid a tough operating environment. Story Continues A 2pc decline in completions, for example, contributed to a 3pc drop in revenue versus the prior year. And with its operating profit margin falling by 1.2 percentage points to 12.2pc, due in part to rising costs, the company’s earnings per share slumped by over 15pc year on year. In the short run, a 6.7pc rise in the minimum wage and increasing employer National Insurance contributions could further weigh on the firm’s financial performance. So, too, could costs related to fire safety that amounted to an additional £69m provision during its latest financial year. Meanwhile, increases to stamp duty that took effect yesterday may further negatively affect the wider housebuilding industry in the near term. Over the long-term, though, Taylor Wimpey continues to offer a favourable risk/reward opportunity. As well as scope for significant capital growth, a dividend yield of 8.7pc suggests it remains a highly attractive income prospect. And with it planning to pay annual dividends amounting to 7.5pc of net assets, or at least £250m, over the coming years, shareholder payouts should grow as the firm becomes increasingly profitable. Yes, the company’s shares have proved to be a thorough disappointment since first being tipped in this column during October 2018. They have fallen by 32pc, thereby underperforming the FTSE 100 index by 51 percentage points. The share price has also declined by 29pc since being added to our income portfolio in June last year. Questor, though, remains upbeat about Taylor Wimpey’s investment potential. It has the financial means and market position to capitalise on an improving industry outlook, with an eventual fall in inflation set to provide scope for monetary policy easing that boosts demand for new homes amid continued constrained supply. Furthermore, the company trades on a low valuation that suggests investors have factored in its tough near-term outlook. As a result, it remains a worthwhile purchase on a long-term view. Questor says: buy Ticker: TW Share price at close: 108.3p Read the latest Questor column on telegraph.co.uk every weekday at 5am. Read Questor’s rules of investment before you follow our tips. View Comments |
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| 19.03.25 05:13:34 | Taylor Wimpey (LON:TW.) Will Pay A Smaller Dividend Than Last Year | |
| Taylor Wimpey plc (LON:TW.) has announced that on 9th of May, it will be paying a dividend of£0.0466, which a reduction from last year's comparable dividend. The dividend yield of 8.2% is still a nice boost to shareholder returns, despite the cut. Check out our latest analysis for Taylor Wimpey Taylor Wimpey's Projected Earnings Seem Likely To Cover Future Distributions While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. Before making this announcement, the company's dividend was much higher than its earnings. This situation certainly isn't ideal, and could place significant strain on the balance sheet if it continues. Earnings per share is forecast to rise by 89.7% over the next year. If recent patterns in the dividend continues, the payout ratio in 12 months could be 94% which is a bit high but can definitely be sustainable.LSE:TW. Historic Dividend March 19th 2025 This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was £0.0156 in 2015, and the most recent fiscal year payment was £0.0946. This means that it has been growing its distributions at 20% per annum over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious. Dividend Growth Potential Is Shaky With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Over the past five years, it looks as though Taylor Wimpey's EPS has declined at around 21% a year. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. On the bright side, earnings are predicted to gain some ground over the next year, but until this turns into a pattern we wouldn't be feeling too comfortable. Taylor Wimpey's Dividend Doesn't Look Great Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. Overall, this doesn't get us very excited from an income standpoint. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've identified 3 warning signs for Taylor Wimpey (1 is a bit concerning!) that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 18.03.25 13:15:41 | First-time buyer mortgage sales in the UK at lowest level in a decade | |
| Mortgage sales for first-time buyers in the UK have reached their lowest point in over a decade, with new data revealing that 2023 marked the fewest first-time buyer mortgages since 2013. The Office for National Statistics (ONS) analysed data from the Financial Conduct Authority (FCA) and found 282,000 new first-time buyer mortgages in 2023 – down from the peak of 394,000 in 2021. This drop comes after a period of strong growth in the early 2010s, when first-time buyer mortgages steadily increased following the 2008 global financial crisis. In 2023, first-time buyer mortgages accounted for 38.4% of all residential property sales, up from 28% a decade earlier. The surge in first-time buyer activity following the 2008 crash was followed by a major dip during the pandemic. In 2020, the number of first-time buyer mortgages fell to just 297,000, amid lockdown restrictions and economic uncertainty. However, the following year saw a rebound, with 2021 reaching the highest number of new mortgages in recent years, largely driven by the temporary stamp duty holiday, which ran from June 2020 to July 2021. Read more:Bank of England poised to hold UK interest rates amid Trump trade war Since 2021, though, the trend has reversed, with sales dropping by nearly 30% between 2021 and 2023, landing at 282,000 – a figure not seen since 2013. Despite this, the proportion of first-time buyers relative to overall housing sales has continued to rise steadily. Between 2006 and 2008, fewer than a quarter of residential sales were made up of first-time buyer mortgages. This figure grew to around one-third (33.8%) by 2018, and by 2023, it had reached 38.4%. This shift is largely due to a faster decline in overall housing sales between 2021 and 2023 (-39.8%) compared to the fall in first-time buyer mortgage sales (-28.6%). London no longer the top location for first-time buyers Once the dominant region for first-time buyer mortgages, the capital now accounts for just 12.7% of all sales, down from 16.8% over a decade ago. Back in 2013, the areas with the highest rates of first-time buyer mortgages were all in London. In particular, Lambeth, Tower Hamlets, and Wandsworth led the pack. However, these areas have seen some of the largest falls in first-time buyer mortgage rates over the last decade, with Lambeth and Tower Hamlets both experiencing declines of over 30%. Read more:Best UK mortgage deals of the week Richard Donnell, executive director at Zoopla, said: “First-time buyers struggle where the cost of buying a home is the greatest, increasing the need for a larger deposit and a higher income to buy. First-time buyers face the biggest challenges in London where sales have fallen according to latest ONS data. The average household income of a first-time buyer in London is £100,000 and the average deposit required is £150,000 (ONS)." Story Continues He added that rising house prices, higher mortgage rates, and stricter mortgage regulations have made it more challenging for first-time buyers, particularly in southern England, and suggested that easing mortgage regulations could help reduce pressure on the rental market. Toby Leek, president of NAEA Propertymark, warned that many first-time buyers are being “priced out of cities” – particularly in London, where the dream of homeownership is slipping further out of reach for younger buyers. “Many first-time buyers are being priced out of cities, especially throughout London where they have grown up or have a desire to nest themselves,” Leek said. He pointed out that the average age of a first-time buyer has risen to 33.5 years, and the amount needed for a deposit is now averaging £50,000. “With the amount of money needed for a deposit continuing to rise, many people may find their homeownership aspirations hard to achieve.” While London’s share of first-time buyer mortgages continues to shrink, the South East of England has emerged as the region with the highest share of new homeowner sales in 2023, accounting for 13.8% of the market. Read more: Average UK house prices dip in February Across the UK, many areas have seen marked growth in the number of first-time buyer mortgages. In 2023, Dartford in the South East saw the highest rate of first-time buyer mortgages, with 20.2 sales per 1,000 dwellings, followed by Harlow in the East of England (16.3 per 1,000) and Nuneaton and Bedworth in the West Midlands (15.5 per 1,000). These areas also experienced some of the fastest growth rates in the decade leading up to 2023, with Harlow, Nuneaton and Bedworth, and Dartford all seeing increases of more than 30%. In Scotland, Wales, and Northern Ireland, first-time buyer mortgage sales are seeing faster growth, especially in rural and suburban areas. In Scotland, areas like South Lanarkshire, North and South Ayrshire, and West Dunbartonshire have seen growth rates above 35%. Metropolitan regions like Dundee, Glasgow and Edinburgh have had slower increases in first-time buyer activity, suggesting a growing disparity between urban and rural markets. Similarly, in Wales, regions like Newport and Torfaen have reported the strongest growth in first-time buyer sales, with rates increasing by more than 40% since 2013. Meanwhile, Cardiff, which had the highest rate of first-time buyer mortgages in 2013, has seen more modest growth, up just 8.6% over the past decade. In Northern Ireland, Belfast has seen solid growth, with the highest increase among devolved capitals, rising 27.9% from 2013 to 2023. However, Antrim and Newtownabbey have seen even higher growth rates of 37.7%. The trend of rising first-time buyer mortgage sales in rural areas and regions outside of major cities suggests that while the path to homeownership may be narrowing in traditional hotspots like London, opportunities are emerging in more affordable markets across the UK. Mark Eaton, chief operating officer at longer-term fixed rate lender April Mortgages, said: "“Getting on the property ladder in the capital is almost impossible on your own and most joint mortgage applicants still require huge deposits. “Our own research shows that a couple earning an average salary in the capital would need a deposit of over £200,000 to buy a home in nearly half of all London boroughs. “One solution is longer-term mortgages of 10-years or more, which reduce monthly repayments and help borrowers qualify for larger loan amounts. This could improve affordability and enable more first-time buyers to purchase in high-cost areas, but it won't fix the problem on its own. “The strongest first-time buyer activity is now outside London, particularly in the North East and Northern Ireland, where property remains more affordable.” Read more How renters can save up to buy their first home HSBC launches sub-4% fixed mortgage rate Most affordable places for single people to buy a UK home revealed Download the Yahoo Finance app, available for Apple and Android. View Comments |
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| 14.03.25 08:51:51 | An Intrinsic Calculation For Taylor Wimpey plc (LON:TW.) Suggests It's 40% Undervalued | |
| Key Insights Taylor Wimpey's estimated fair value is UK£1.85 based on 2 Stage Free Cash Flow to Equity Taylor Wimpey is estimated to be 40% undervalued based on current share price of UK£1.11 Our fair value estimate is 26% higher than Taylor Wimpey's analyst price target of UK£1.47 Does the March share price for Taylor Wimpey plc (LON:TW.) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Check out our latest analysis for Taylor Wimpey The Model We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£185.2m UK£313.6m UK£328.9m UK£390.0m UK£435.3m UK£473.7m UK£506.3m UK£534.1m UK£558.4m UK£579.9m Growth Rate Estimate Source Analyst x6 Analyst x8 Analyst x7 Analyst x2 Est @ 11.62% Est @ 8.83% Est @ 6.87% Est @ 5.50% Est @ 4.54% Est @ 3.87% Present Value (£, Millions) Discounted @ 8.8% UK£170 UK£265 UK£255 UK£278 UK£286 UK£286 UK£281 UK£272 UK£262 UK£250 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = UK£2.6b Story Continues We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.3%. We discount the terminal cash flows to today's value at a cost of equity of 8.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£580m× (1 + 2.3%) ÷ (8.8%– 2.3%) = UK£9.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£9.1b÷ ( 1 + 8.8%)10= UK£3.9b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£6.5b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of UK£1.1, the company appears quite good value at a 40% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.LSE:TW. Discounted Cash Flow March 14th 2025 The Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Taylor Wimpey as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.8%, which is based on a levered beta of 1.265. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Taylor Wimpey Strength Debt is not viewed as a risk. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the British market. Good value based on P/E ratio and estimated fair value. Threat Dividends are not covered by earnings and cashflows. Revenue is forecast to grow slower than 20% per year. Looking Ahead: Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For Taylor Wimpey, there are three further factors you should assess: Risks: Take risks, for example - Taylor Wimpey has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about. Future Earnings: How does TW.'s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 19.02.25 06:00:21 | Four in five homebuyers to pay more stamp duty from April | |
| The cost of buying a home in the UK will rise for most homebuyers from April, with new analysis revealing that four in five homeowners England and Northern Ireland will pay more stamp duty. The 2% rate between £125,000 and £250,000 will return in April, in a blow to the UK property market. Currently, only 49% of homeowners are liable for stamp duty, but this proportion will surge to 83% once the revised rules take effect. As a result, many will face a higher stamp duty burden, amounting to an extra £2,500 on purchases that cost between £125,000 and £250,000. The changes will generate an additional £1.1bn annually for the government, according to property site Zoopla. Read more: Homeowners hit with £243 monthly rise at end of fixed-rate mortgages Only 17% will remain exempt from stamp duty after the changes, which will impact homeowners purchasing properties over £250,000. The changes will have different effects regionally, with the West Midlands seeing the largest increase, with the number of homeowners liable for stamp duty surging by 66%, followed by the East Midlands (55%) and the North West (50%). The impact will vary across the UK. In the North East just 7% of homeowners currently pay stamp duty, but this will rise to 40% from April. Meanwhile, homeowners in London face the highest stamp duty rates, with 97% of sales expected to be subject to the tax by April. The regions most affected by the return of the 2% band are the South West and Eastern England, where the percentage of sales paying stamp duty will increase by 41% and 21% respectively. First-time buyers will also see an increase in the proportion liable for stamp duty. Under current rules, 21% of first-time buyers pay stamp duty. However, by April 2025, this will double to 42%, with the increase most acutely felt by those purchasing homes in London and the South East. Purchases between £300,000 and £625,000 will see an increase in tax liability, with costs of up to £15,000 per purchase. Buying at £350,000 will cost £2,500 per purchase, up from £0 today. Buying a £500,000 home will cost £10,000 in stamp duty, up from £3,750 today and buying at £550,000 will jump from £6,250 to £15,000. Read more: Average UK house price rises to almost £368,000 Yet, 58% of first-time buyers will remain exempt from stamp duty on purchases of homes priced under £300,000, benefiting those buying in areas with lower property values, such as the North East and North West. The number of first-time buyers liable to pay stamp duty will be the lowest in the North East (2%), Yorkshire and the Humber (3%), Northern Ireland (5%) and the North West (5%). Story Continues Richard Donnell, executive director at Zoopla, said: “Stamp duty has become a big source of tax revenue, approaching £10bn a year for the government. The reduction in tax reliefs from April will see more homebuyers paying stamp duty.” Donnell added: “Existing homeowners will pay up to £2,500 more for each purchase across a large number of sales. The average seller has made £60,000 in capital gains, so there is flexibility to absorb this cost, but buyers will expect to factor this extra cost into what they offer. “It’s positive that most first-time buyers will still pay no stamp duty from April, but these changes hit those buying over £300,000 in southern England the hardest, where buying costs are already high. This will reduce buying power and market activity at a local level.” Read more: How to complete on a property before stamp duty deadline in March He also warned that stamp duty continues to be a major tax burden, particularly in southern England, where affordability challenges are already pressing. “The case for reforming stamp duty remains, but the question is where to replace the multi-billion-pound tax revenues,” Donnell said. Stamp duty applies in England and Northern Ireland. In Scotland — where the tax is referred to as land and buildings transaction tax — buyers are required to pay if the property's value is above £145,000, or over £175,000 for first-time buyers. In Wales, the stamp duty, known as transaction tax, applies to properties valued over £225,000. Read more: How to check your home’s Energy Performance Certificate 7 property planning trends of 2025 How to negotiate house prices Download the Yahoo Finance app, available for Apple and Android. Download the Yahoo Finance app, available for Apple and Android. View Comments |
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| 31.01.25 07:36:55 | UK house prices barely rise in January amid high borrowing costs | |
| January’s house price growth in the UK slowed more than expected, rising by just 0.1% month-on-month to £268,213, following a 0.7% gain in December. The surprise slowdown suggests potential impact of high borrowing costs on the housing market amid record mortgage rates. According to Nationwide, house prices are still up 4.1% compared to the same time last year, but the annual growth rate has slow downed from 4.7% in December. The latest data suggests that the UK property market may be losing some of its previous momentum, as borrowing remains expensive and the cost of living crisis continues to affect many buyers. Robert Gardner, Nationwide’s chief economist, said that while there has been a modest improvement in affordability over the past year, the situation remains difficult by historical standards. “A prospective buyer earning the average UK income and buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 36% of their take-home pay – well above the long-run average of 30%,” he explained. Read more: The cheapest and most expensive places to rent in Britain House prices are still high relative to average earnings. The first-time buyer house price to earnings ratio stood at 5.0 at the end of 2024, significantly higher than the long-term average of 3.9. This has made it challenging for many to save for a deposit, with the burden worsened by the record rise in rents in recent years. The cost of living crisis has further eroded the ability of renters to save for a home. Sarah Coles, Yahoo Finance UK columnist and head of personal finance at Hargreaves Lansdown said: “Prices are still under pressure from buyers trying to clamber through the stamp duty holiday window, before it slams shut at the end of March.” “Given these hurdles, it is not surprising that a significant proportion of first-time buyers are relying on financial assistance from family or friends,” Gardner added. “In 2023/24, around 40% of first-time buyers had some form of deposit help, whether through a gift, loan or inheritance.” Despite these pressures, the rate of homeownership has remained largely stable in recent years. Nationwide's analysis cites data from the latest English Housing Survey, which shows the homeownership rate at 65% in 2024, unchanged from the previous year. Also, the proportion of people owning their homes with a mortgage has edged up, though the majority (around 55%) own outright. This reflects shifting demographic trends, particularly among older households. Gardner pointed out that while homeownership among younger age groups remains below 2004 levels, there has been some improvement. For instance, the homeownership rate for those aged 25-34 has gradually risen from 36% in 2014 to 45% in 2024, though still far below the 59% peak seen in 2004. Story Continues Nationwide warned that the housing market in the UK is facing mounting affordability challenges, which, combined with rising borrowing costs, could lead to a further slowdown in price growth. Read more:UK mortgage approvals up in December ahead of stamp duty increase Alice Haine, personal finance expert at Bestinvest, said: “While the start to 2025 is slightly more muted than the previous month, demand remains robust, something likely to continue over the next couple of months as buyers rush through deals ahead of an increase in stamp duty land tax from the start of April. "The government’s decision not to extend the current relief on stamp duty thresholds beyond the end of March is likely to be a motivating factor for many first-time buyers." Read more: Best UK mortgage deals of the week Karen Noye, mortgage expert at Quilter, commented: “For those thinking about moving, 2025 is a good time to reassess plans. While the signs of market stabilisation are encouraging, there’s still some uncertainty, and careful financial planning will be key to navigating what could be a tricky year.” Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “Currently, it’s likely a lot of movement in the market is due to people wanting to push through with their purchases and sales before the stamp duty rises in England and Northern Ireland in April.” From April 1, the “nil rate” stamp duty band for first-time buyers in England and Northern Ireland will reduce from £425,000 to £300,000. Download the Yahoo Finance app, available for Apple and Android. View Comments |
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| 03.10.24 05:00:36 | UK's fastest selling property market revealed | |
| A place where it only takes around two weeks to sell your house might seem like a fantasy but that is exactly what is happening in the small town of Carluke, Scotland, where sellers are finding a buyer in an average of 15 days. That makes the town in Lanarkshire the fastest selling market this year across Great Britain, with an average asking price of £170,468, according to property platform Rightmove (RMV.L). Following closely behind, Giffnock in Glasgow sees properties finding buyers within an average of 16 days, while nearby Uddingston takes 17 days. Both towns benefit from their proximity to central Glasgow, making them attractive options for commuters. In comparison, the average time to find a buyer across the UK is 60 days. All 10 of the quickest-selling locations are situated in Scotland, with sellers enjoying faster sales than they did a year ago. The average time to find a buyer in Scotland has risen slightly to 33 days, compared to 32 days in 2022, solidifying its status as the quickest market in the country. In contrast, the East Midlands languishes at the bottom, with an average of 67 days to secure a buyer. Read more: When will mortgages get cheaper and is offsetting the answer? Nine of the 10 slowest markets are coastal towns, including Brixham in Devon and Minehead in Somerset. In London, the fastest-selling markets are found further from the city centre. Walthamstow, Stoke Newington, and Dagenham are currently leading the pack, driven by well-connected transport links and relatively affordable prices. On the other hand, premium central locations such as Knightsbridge, Chelsea, and Victoria are experiencing longer sales times, with Knightsbridge slowing by 24 days compared to last year to an average 135 days — a trend likely influenced by its high price point and a limited pool of mass market buyers. It takes an average of 108 days to sell a property in Chelsea and 100 days for homes in Victoria to find a buyer. Across Great Britain, terraced houses are selling at the quickest rate at an average 51 days, while detached homes are taking the longest, averaging 73 days. Read more: UK property deals surge as banks approve most mortgages since 2022 Tim Bannister, property expert at Rightmove, said: “Carluke has once again secured the title of the fastest market in Great Britain, showcasing the enduring speed of sales in this part of Scotland. "The popularity of Giffnock and Uddingston indicates a strong demand for accessible yet spacious living. "Meanwhile, in London, commuter areas like Walthamstow and Dagenham lead in sales speed, contrasting sharply with the slower-moving luxury markets of Knightsbridge and Chelsea, which operate at a different pace altogether.” Download the Yahoo Finance app, available for Apple and Android. |
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| 19.09.24 12:21:17 | What the Bank of England’s interest rate decision means for your mortgage | |
| The Bank of England's decision to hold interest rates at 5% was anticipated by many, yet it remains a blow to mortgage holders dealing with high borrowing costs. For homeowners with variable or tracker rate mortgages, the Bank’s decision means monthly payments will stay the same, offering a temporary reprieve from the uncertainty of potential future rate hikes. However, those with fixed-rate mortgages are likely to experience the lingering effects of past rate increases when they remortgage, as lenders incorporate current economic conditions and the Bank’s policies into their offers. Alice Haine, personal finance expert at Bestinvest, said: “The decision to keep interest rates on hold may unsettle households, especially as they navigate a tight budget. While easing inflation and last month's rate cut have provided some relief from high borrowing costs, they have not entirely resolved the affordability issues faced by existing homeowners and prospective buyers.” About 1.6 million existing borrowers have relatively cheap fixed-rate deals expiring this year. Read more: Bank of England holds interest rate at 5% Haine also noted that while some better mortgage rates are available, new buyers must be strategic to keep monthly repayments manageable. This might involve seeking larger deposits from family or opting for longer mortgage terms — 30, 35, or even 40 years — instead of the traditional 25-year term. For those on tracker mortgages, relief may only come after the next Monetary Policy Committee (MPC) meeting. Meanwhile, borrowers with fixed-rate deals secured before the Bank of England's tightening cycle began will face significant repayment increases as their deals expire. Matt Smith, mortgage expert at Rightmove, said: “We still expect two rate cuts before the end of the year, which should lead to a downward trend in mortgage rates by Christmas. However, the response from lenders may be moderate, as their funding costs are unlikely to decrease substantially, limiting the extent of rate cuts.” Despite today's setback, experts anticipate some relief for mortgage holders. Laura Suter, director of personal finance at AJ Bell, predicted: “Interest rates are expected to end the year at 4.5%, with two successive cuts before Christmas. This could ignite further activity in the housing market, which has already seen a pickup since last month’s cut. Potential buyers may also delay their purchases, hoping for even lower rates later in the year.” Ryan McGrath, director of second charge mortgages at Pepper Money, expressed hope that the Bank's decision will encourage lenders to lower rates ahead of an anticipated November cut. “This rate hold may be the catalyst lenders need to adjust their rates, providing more options and stock in the market for potential buyers.” Story continues Read more: Best UK mortgage deals of the week Guy Gittens, chief executive of Foxtons group, said that since the interest rate cut in August — the first in four years — there has been an increase in buyers entering the market after strengthened mortgage approval numbers. "While rates have been held today, this improving market momentum is only likely to strengthen further, as mortgage rates continue to trend downwards, putting the property market in very good stead for the remainder of the year," he said. Savings and Credit Cards In light of the Bank of England’s decision, Liz Edwards, a money expert at Finder.com, has advised savers to lock in the best available rates. “Today’s decision, while disappointing for borrowers, serves as a reminder for savers to take advantage of higher rates on fixed-rate accounts,” Edwards said. Finder’s research revealed that eight of the 16 largest UK banks have already reduced rates on easy-access savings accounts since the Bank’s base rate cut earlier this month. Mark Hicks, head of active savings at Hargreaves Lansdown, echoed this sentiment: “The decision to keep rates steady is positive for savers. Had a rate cut occurred, we would have seen a swift follow-through from other banks and building societies.” Read more: What we're expecting to see in the autumn budget For credit card holders, changes in the base rate can affect interest charges if their card’s rate is linked to it. Cardholders should receive a 30-day notice prior to any rate increases. The cost of securing new credit has risen compared to a year ago due to higher rates. Data from Moneyfacts shows that the average credit card interest rate for September 2024 is 35.5%. While personal loan and car financing rates are typically fixed, borrowers should verify their terms with lenders. Download the Yahoo Finance app, available for Apple and Android. |
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