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3 top UK shares to buy

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When I am looking for investments for my portfolio, I like to concentrate on what I believe are the market’s best shares. With that in mind, here are three top UK shares to buy today, which I would add to my portfolio. 

Shares to buy

When looking for top UK shares, I focus on company fundamentals rather than stock price performance. That is why I would buy easyJet (LSE: EZJ).

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The low-cost airline operator has a robust business model and a high level of brand recognition among consumers. While the pandemic has devastated it, these qualities should help the enterprise stage a strong recovery as the aviation market rebounds. Initial indications show that customers are already booking in solid numbers for 2022, not just with easyJet but with the whole industry in general. 

While I could select any other aviation enterprise to buy to play this theme, easyJet remains my top pick for the reasons outlined above.

Even though I rate this as one of the top UK shares to buy, I am well aware that it also faces challenges. These include rising costs and the risk of another wave of coronavirus, which could destabilise the aviation industry’s recovery. 

Top UK shares

As well as easyJet, I would also acquire homebuilders Barratt Developments (LSE: BDEV) and Bellway (LSE: BWY). I think these are some of the best shares to buy now, and the reason why is simple. 

The UK housing market is experiencing two tailwinds that are driving both prices and demand higher. Ultra-low interest rates and a lack of new-builds are pushing up demand. Meanwhile, a lack of properties coming to market is restricting supply. 

These top UK shares are rising to the challenge. Barratt is targeting an output of 20,000 homes a year in the near term. In its last fiscal year, the group completed 17,200 properties

After a slight setback in 2020, Bellway’s output rose back above 10,000 properties in the year to the end of July. To meet the growing demand, during the year, the group spent more than £1bn on land with room for just under 20,000 properties, a record for the business. In its 2019 financial year, it acquired just over 13,000 plots. 

These output and buying figures support my conclusion that these homebuilders are rising to meet the challenges of the UK property market and are some of the top UK shares to buy today. As property prices continue to expand, they should reap rewards from their growth plans. 

Of course, there is no guarantee property prices will continue to increase indefinitely. The sudden jump in supply or an increase in interest rates could send demand plunging. This may be bad news for these firms that have invested billions in new developments. 

Despite these risks, I would buy both of these top UK shares for my portfolio today. 

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Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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