Should income investors back housebuilders?

Three key areas of concern

Are UK housebuilders a good hunting ground for income investors? The sector's dividend yield may be a generous 5.9%, but I am resisting the temptation, writes Miton's Eric Moore.

The first concern is financial metrics of the housebuilders are back to all-time highs. Margins and returns on capital have never been better and look decidedly ‘peaky'. Mean reversion may have its way.  Secondly, affordability is incredibly stretched. The average UK house price is just over £220,000, 8.4x average earnings of £26,100. This is off the clock by historical standards. Colin Morton: Where are the opportunities in UK equities? Monthly mortgage payments may look affordable because interest rates are so low, but the elevated income multiples are a stark reminder that cheap...