Twindig Housing Market Index (HMI) - 20 August 22

In the week that saw house prices rise in every region of the UK apart from Yorkshire and Humberside and inflation reach a 40-year high the Twindig Housing Market Index fell by 1.0% to 77.9 this week as residential investors worried that rising inflation and soaring energy costs may cause the housing market to miss a step as it recalibrates. However, housebuilder Persimmon delivered reassuring results this week and the banking licence awarded to Perenna suggests that there could be some much-needed innovation in the UK mortgage market.     

Persimmon powers ahead

FTSE 100 housebuilder Persimmon delivered a robust set of half-year results this week, and in our view, its transformation remains on track, customer service levels remain high and in a world of rising prices, Persimmon is working hard to keep all stakeholders happy. For homebuyers: the average sales price of its homes at £245,597 are around 20% lower than average UK house prices, and customer satisfaction levels are high. For investors: Profit margins are robust, the forward orderbook is up, and cash is being returned to shareholders. This is not one last hurrah before the housing market turns. Persimmon is growing its landbank and opening more outlets, it believes in the strength of the underlying housing market and with the shares trading offering a dividend yield of 12.7%, an investment in Persimmon may well be as safe as houses.

Perenna fixing the UK Mortgage market for life

With mortgage rates rising and the cost of living surging many homebuyers and households are looking for certainty. Perenna, which received its banking licence this week, is looking to meet those needs by offering mortgage certainty in an increasingly uncertain world. Long-term fixed-rate mortgages are popular and big business in other countries, Perenna is about to launch them in the UK and they might just shake up the whole UK mortgage market.

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Is mainstream fractional homeownership ownership one step closer to reality?

This week investment company and pension provider abrdn became the largest external shareholder in the regulated digital exchange Archax. If adbrn is willing to invest in a global cryptocurrency & regulated digital asset ecosystem such as Archax are they perhaps warming to digital or tokenised assets in general, and could this pave the way to fractional ownership becoming mainstream in the UK?