Wednesday newspaper share tips: Housebuilding boom to benefit Bellway investors

The housing market is again in the headlines as it was in the sights of The Times’ Tempus on Wednesday.

The newspaper pundit said there’s no reason the housebuilding boom should reverse, which is good news if you’re looking into Bellway shares. It said the Newcastle-based property developer has had a great financial year with every metric looking up and a record number of houses built. Not only that, Tempus pointed out that it plans to increase the number of houses built by 10% in this financial year.

“It is hard to see how any of this can go into reverse,” Tempus noted, “given ultra-cheap mortgage finance, the lack of properties and the continuation of Help to Buy until 2020. It is a classic sellers’ market.”

For that reason and due to the relatively low price of the shares compared to competitors, it recommended traders buy these shares long term.

On the other hand, The Telegraph’s Questor took a look at the company responsible for getting the mail to your newly built house – Royal Mail.

After the government sold its last chunk of shares in the company, Questor said it removed the overshadowing knowledge that a key investor is looking to leave the company.

When it comes to the business it operates, it said that while Royal Mail is facing some big challenges, it has a strong balance sheet and a very dominant market position. It’s also raising stamp prices to combat falling letter volumes, and saving money by cutting costs.

With shares trading on 14 times the forecast earnings, Questor said it looks good value given the income on offer and advised shareholders to 'hold'.