We’ve heard about the stock market correction, after the FTSE 100 fell more than 10% from its February peak of 10,935 points. But the eyeball-catching headlines tend to miss one important point. The index had only just stormed up that high.
We have a war in the Middle East, oil climbing over $100 per barrel, and renewed inflation threats. Yet the Footsie is only back to early January levels. Still, I guess headlines today that said “FTSE 100 ever so slightly ahead in 2026” wouldn’t get all that many clicks.
To me it shows the resilience of UK companies, and I think it should give us confidence ahead of the 5 April ISA deadline. Oh, and maybe some second chances at picking up a few FTSE 100 stocks at nicer prices.
Correction bargains?
Even if a stock market dip is generally mild overall, it can throw up some bigger price falls for long-term investors to consider buying into. And it draws my attention to two stocks in one of my favourite sectors. It’s the housebuilding industry, and I’m looking at Persimmon (LSE: PSN) and Barratt Redrow (LSE: BTRW).
Both have fallen pretty hard, with a year-to-date 22% slide for Persimmon. Barratt Redrow is down a whopping 33% since the start of 2026.
Before I look further, one thing immediately strikes me. And it’s something I always look for when I see falls in stocks with long-term histories of cash generation. Both forecast dividend yields have been boosted by the share price drops. Analysts now have Persimmon on a forward yield of 5.6%, with Barratt’s up at 6.7%. Those are, of course, not guaranteed.
Upbeat results
With February’s first-half results, Barratt Redrow reported the completion of 7,444 homes — up 4.7% year on year. At the time, the company said it expected to complete 17,200 to 17,800 homes in the full year.
In March, Persimmon reported a 12% rise in full-year completions to 11,905 homes. And the board said to expect between 12,000 and 12,500 in 2026. The company did, perhaps ominously, say: “Assuming the conflict with Iran and its impact is short, Persimmon is set to grow again in 2026.”
FTSE 250 builder Bellway, however, saw its share price dip sharply on interim results day on 24 March. Further into the Iran war, the company warned: “The ongoing conflict in the Middle East heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market.“
Housing crisis?
It’s looking like inflation is set to turn ugly again. And hopes of imminent interest rate cuts from the Bank of England have pretty much evaporated. Those are not good things for mortgage borrowers and housebuyers.
But if anyone sees this as a crisis for housebuilders, I think they’re dead wrong. Sure, it’s a setback. And I reckon anyone buying now could have a few squeaky months of stock market volatility ahead. But for long-term ISA investors, FTSE 100 builders have to be worth serious consideration at today’s prices.
