Niche house builders add value and profits growth

House builders are looking good value with the opportunity of future growth looking realistic due to the changing social climate. The FTSE Construction and Building materials index is currently trading on a price to earnings ratio of 10.5 times and offers a yield of 4.04%. In contrast the FTSE All-Share is trading at a P/E of 25 times and provides a yield of 2.83%. Aberdeen Asset Managers is favouring house builders as the fundamentals look attractive, according to Neil Cumming, manager of Aberdeen High Income. He says: "Mortgages are relatively low and the supply of houses is being rest...