FTSE 100 stocks to watch as UK house price index soars

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The FTSE 100 index moved upwards cautiously on Wednesday as tensions on Ukraine subsided. The index rose by 80 basis points in line with the performance of other European stocks and American futures. At the same time, data by Nationwide showed that the UK house price index (HPI) continued rising in February. Here are some of the best FTSE 100 stocks as UK home prices rise.

Lloyds Bank 

Lloyds Bank (LON: LLOY) is the biggest mortgage lender in the UK. The company offers these solutions through its several subsidiaries like Lloyds and Halifax. Therefore, the bank tends to benefit in a period when home prices are rising because it implies that the housing market is doing well. 

At the same time, the bank is implementing a strategy that will see it become the biggest landlord in the UK. It is already a landlord to many people in the UK, meaning that the value of its houses has likely risen in the past few months.

Last week, the company published mixed quarterly results. It said that its profit rose to 6.2 billion pounds in 2021. The figure was lower than the median estimate of 7.2 billion pounds because of one-time charges. It also announced a giant 2 billion-pound buyback. The Lloyds share price rose by 70 basis points after the house price index data.

Persimmon

Persimmon (LON: PSN) is one of the biggest UK homebuilders. The firm has a market cap of more than 7.7 billion pounds and sells thousands of homes every year. The Persimmon share price jumped by more than 5% after the latest house price index data.

The price action was also because of the company’s strong quarterly results. The firm said that it expects that its volume growth will increase by between 4 and 7% of 2021 levels. It built 14,551 new homes in 2021 after building 13,575 in 2020. 

Rightmove

Rightmove (LON: RMV) is a FTSE 100 company that operates the biggest online real estate platform in the UK. It has a market cap of over 5.4 billion pounds. Like most companies in its industry, Rightmove does well when the property market is doing well.

 In February, Rightmove said that its operating profit for 2021 was 226 million pounds, which was higher than the previous year’s 135 million pounds. The average revenue per advertiser rose by 9%.

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