A heap of FTSE 100 shares are climbing this morning after the UK’s December shopper price inflation determine got here in barely decrease than anticipated at 2.5%.

It’s instructive to see which of them are on the up. It suggests they’re those to profit from decrease inflation and rates of interest – after we lastly get them. Ought to traders think about shopping for them?

Housebuilder Barratt Redrow (LSE: BTRW) has jumped 3.67% right now (15 January) as traders digest the optimistic inflation shock. It’s about time they noticed some share price development. The inventory’s nonetheless down 25% over 12 months, and 40% over three years.

Can the share price construct on this?

Falling inflation and rates of interest make mortgages extra inexpensive for potential homebuyers. This could enhance demand and home costs, driving up gross sales and revenues. Decrease inflation may also minimize the price of supplies reminiscent of timber, metal and cement, and put a lid on wages too. All would enhance revenue margins.

Barratt Redrow shares look respectable worth, with a price-to-earnings (P/E) ratio of 14.2. The dividend yield is a stable 3.88%. I received’t get too excited although. Inflation’s anticipated to hit 3.2% by spring, as Funds tax hikes and minimal wage will increase kick in, together with Donald Trump’s mooted tax cuts and commerce tariffs. Traders might should be affected person.

The identical precept applies to a different share that’s flying this morning, industrial actual property funding belief (REIT) Land Securities (LSE: LAND). Its shares are up 3.65% as I write, as decrease inflation and borrowing prices would ease the stress on an organization that had web debt of £3.6bn in September.

They might additionally make it simpler to fund new developments and refurbish its current property, in addition to supporting rental yields and minimising defaults.

Please be aware that tax remedy is determined by the person circumstances of every shopper and could also be topic to alter in future. The content material on this article is offered for data functions solely. It isn’t meant to be, neither does it represent, any type of tax recommendation.

Landsec presents a superb yield

Till we get there, volatility’s more likely to proceed. The Landsec share price is down 22% over one yr and 32% over three.

But it seems to be good worth with a P/E of simply 10.6, whereas yielding a blockbuster 7.2%. Once more, traders should be affected person as inflation stays sticky. Working from residence can be hitting demand for workplace area whereas struggling customers spend much less at retail centres. The group’s diversification into mixed-use developments might mitigate among the dangers.

It’s hardly a shock that my third inventory in restoration mode can be within the property sector, pupil housing specialist Unite Group (LSE: UTG). Decrease borrowing prices would make increasing its portfolio of properties cheaper and simpler, whereas secure inflation would assist predictable hire development.

The Unite share price has additionally taken a beating, falling 24% during the last 12 months. It’s not tremendous low-cost although, with a P/E of 17.8. The yield’s 4.4%.

Unite might take a success if Labour tries to cut back immigration by tightening pupil visas, hitting demand for lodging.

At this time, occupancy ranges for the 2025/26 educational yr anticipated to be 97-98%. CEO Joe Lister reckons that “the outlook for student numbers remains positive with a growing UK 18-year-old population and improving trends in international student recruitment”.

I anticipate all three to spark into life as soon as inflation actually begins falling and central banks get chopping. The issue is, that would take time. All three are value contemplating, however with a long-term view as I anticipate additional ups and downs.