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FTSE 100 crash: I’d buy these 2 cheap UK shares in an ISA today to make a million

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The FTSE 100 crash means many UK shares now trade at low prices. Although there’s scope for further falls in their price levels, over time, they could offer strong recovery potential that improves your chances of making a million.

With that in mind, here are two UK shares that appear to offer good value for money at the present time. While their industry outlooks may be somewhat uncertain, for long-term ISA investors they have the capacity to generate high returns as part of a diverse portfolio of shares.

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FTSE 100 housebuilder Persimmon

Although FTSE 100 stocks such as Persimmon (LSE: PSN) have experienced disrupted operating conditions in recent months, their prospects could improve over the medium term.

In Persimmon’s case, low interest rates and the stamp duty holiday may encourage a larger number of potential buyers to go ahead with a home purchase. Furthermore, government support, such as the Help to Buy scheme, could push many first-time buyers towards new homes. This could boost the company’s financial performance, with it recently reporting that forward sales are around 15% ahead of the same time from last year.

With the company having a strong financial base that includes cash holdings of around £830m, it appears to be in a solid position to overcome short-term risks. And, since its share price is still down on its 2020 starting price, it appears to offer scope for capital returns as the prospects for the economy gradually improve.

While other FTSE 100 stocks offer greater geographical diversity than Persimmon, the prospects of the company’s improving operating environment could make it an attractive proposition. As such, now may be the right time to buy a slice of it ahead of what could be a return to higher demand for new homes across the UK.

Barclays

Another FTSE 100 share that could offer long-term growth is Barclays (LSE: BARC). Prior to the coronavirus pandemic, it was making encouraging progress in implementing its strategy. For example, it had strengthened its financial position over recent years and was in a position to increase the amount of capital returned to shareholders.

Clearly, the uncertain economic outlook is disrupting the bank’s prospects. However, its recent trading update highlighted the strength of its investment banking arm. Its financial position also suggests that it’s well capitalised. This indicates it has the financial means to overcome what could be a challenging period for the world economy.

Although the Barclays share price may continue to underperform the FTSE 100 in the short run, it could benefit from improving long-term prospects for the world economy. Therefore, buying a slice of it now while it trades 36% lower than at the start of the year could prove to be a shrewd move that improves your portfolio’s performance.

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Peter Stephens owns shares of Barclays and Persimmon. The Motley Fool UK has recommended Barclays. 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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