Homebuilders look cheap, but this is a better bet on the UK housing market

If you’re looking to get exposure to the UK housing market, don’t buy the builders – buy this stock instead.

New Barratt Houses Site
Barratt’s net income ticked higher by 2.6% in the first half of its 2022 financial year.
(Image credit: © Getty)

The UK property market is on fire, supported by the dual accelerants of limited supply and low interest rates (although rates are rising, they’re still incredibly low by historical standards).

In this environment, property developers should be flying. Yet shares in some of the UK’s largest-listed developers are in the doldrums. Two great examples are Persimmon (LSE: PSN) and Barratt Developments (LSE: BDEV).

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.