From Morningstar: 2025-05-22 08:36:00

The UK housebuilding sector is attracting fund managers as mortgages become cheaper and the Labour government plans to build 1.5 million homes by 2030. Persimmon stands out as the only UK housebuilder in the Waverton UK Fund due to higher profitability and cost control. They plan to build 11,000 to 11,500 homes this year, with recent profits beating forecasts.

Morningstar analysis indicates that Persimmon is significantly undervalued, trading at £13.66 with a dividend yield of 4.4%. Bellway, another UK housebuilder, is expected to boost its dividend yield as interest rates fall. The company’s final dividend for 2024 was 38p, down from previous years, but analysts believe future earnings will support higher dividends.

Berkeley Group, focusing on higher quality houses in the southeast of England, is also an undervalued housing stock with a dividend yield of 1.59%. The company’s stock is currently trading at £42.30, below Morningstar’s fair value estimate of £50.80. Berkeley stands out for its focus on brownfield development, which allows for easier planning permission in built-up areas like London and Birmingham. 1. The stock market surged today with the S&P 500 closing at a record high of 4,500 points. This was driven by strong earnings reports from major tech companies like Apple and Google, as well as positive economic data.

2. A new study found that 70% of Americans have received at least one dose of the COVID-19 vaccine. This marks a significant milestone in the country’s vaccination efforts, with over 200 million doses administered so far.

3. The labor market continues to show signs of recovery, with unemployment claims falling to a new pandemic-era low of 340,000. This is a positive sign that the job market is improving as more businesses reopen and hire new workers.



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