@Pref you really need to look at the builders over a full cycle, say going back 10 years, dividends are important too, especially latterly.
You’re also missing out 2 of the ‘big 6’ and I’m not sure Crest Nich are included in that number. BOVIS (BVS) are and I can’t get my brain working to pull up the others this morning. Possibly BKG, although they are all London. Bellway, Redrow, possibly. If you’ve got time you might want to update your work.!
I know its a LLOY board but mortgages are important to them and so the help to buy promises (and Johnsons rant against the big 6 in his last conference speech as an M.P.) might become an issue for holders.
Not sure which builders are helped most by help to buy but PSN have always been up front about it being a big part of their sales, but I can’t remember the numbers off the top of my head. Possibly 17% but that might include ‘affordable homes’ sold also.
Note the failure announced today of the government ‘starter homes’ scheme targeted at 23-40 year olds and failing to build one house in the 5 years since it was announced with a target of adding 200,000 and a 20% discount to all qualifying buyers.
I believe there is a trading update from PSN this week (tomorrow?) which could be important given their relatively poor performance over the last year and subsequently the largest builder that has been well off its highs. If they show signs they’ve cracked their quality issues, or at least started to turn them around, that should start to see the gap close share price-wise.
Did anyone find out why Crest Nich had a bad statement the other day? I haven’t had time to look. As usual a lot of pundits were quick to jump on that as possibly an end to this housing cycle, quickly forgetting the recent stellar numbers reported by the likes of BDEV.