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As Safe as Houses? FTSE-listed Developers and their Share Prices

Updated: May 4


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(Article Disclaimer - The information provided in this article is for general informational purposes only and does not constitute financial advice. Eagle Eye is not a regulated financial advisor and the content should not be relied upon as a basis for making any investment decisions. Investing carries risks, and you may lose some or all of the money you invest, or even more in certain circumstances. Readers are solely responsible for any financial actions or investment decisions they choose to make as a result of reading this article. Eagle Eye accepts no liability for any loss or damages incurred.)


Over the past decade, the UK's housebuilding sector has experienced significant fluctuations, influenced by economic cycles, policy changes, and market dynamics. This article examines the share price performance of key FTSE-listed developers over the past decade, highlighting the factors that shaped performance.


Share Price Performance Overview


Barratt Developments (BDEV)


  • April 2015 price - Approximately 500 GBX

  • August 2024 price - Approximately 507 GBX

  • ROI - Approximately +1%


Barratt Developments merged with Redrow in October 2024.


Bellway (BWY)


  • April 2015 price - Approximately 2011 GBX

  • April 2025 price - Approximately 2564 GBX

  • ROI - Approximately +27%


Berkeley Group (BKG)


  • April 2015 price - Approximately 2961 GBX

  • April 2025 price - Approximately 4000 GBX

  • ROI - Approximately +35%


Persimmon (PSN)


  • April 2015 price - Approximately 1650 GBX

  • April 2025 price - Approximately 1250 GBX

  • ROI - Approximately -25%


Redrow (RDW)


  • April 2015 price - Approximately 382 GBX

  • August 2024 price - Approximately 779 GBX

  • ROI - Approximately +103%


Redrow merged with Barratt Developments in October 2024.


Taylor Wimpey (TW)


  • April 2015 price - Approximately 166 GBX

  • April 2025 price - Approximately 115 GBX

  • ROI - Approximately -30%


Vistry Group (VTY)


  • January 2020 price - Approximately 1350 GBX

  • April 2025 price - Approximately 620 GBX

  • ROI - Approximately -54%


Vistry Group was formed in January 2020 following the merger of Bovis Homes and Galliford Try's housing business.


Factors Influencing Share Price Performance


  1. Economic cycles - Brexit, COVID-19, and recovery phases impacted consumer confidence and housing demand.

  2. Government policies - Schemes like Help to Buy and changes in stamp duty regulations influenced market dynamics.

  3. Interest rates and inflation - Changes affected mortgage affordability and construction costs.

  4. Supply chain challenges - Post Brexit and pandemic disruptions increased materials costs and caused delays.

  5. Mergers and acquisitions - The Barratt Redrow merger in 2024 reshaped the competitive landscape.


Final Thoughts


The fluctuations and inconsistent returns across the FTSE-listed developers exemplify the difficulty of operating in the increasingly regulated and financially constrained housebuilding sector. The share price performances show investor confidence and favour for certain developers compared with others. This demonstrates that confidence is not shared for all developers in the sector as a result of various factors pertaining both to developers themselves and the market alike.


Note - Data in this article was sourced from Barchart.com (www.barchart.com) and London Stock Exchange (www.londonstockexchange.com).

 
 
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