Five of the Best: Ways to play the US housing recovery

Peter Kaye and Nabeel Mughal, managers of the £98m Melchior North American Opportunities fund, pick five indirect plays on the US housing market.

US housing has been in the doldrums since the sector effectively sparked the credit crisis of 2007-2008, but recent data has indicated the market is stabilising and now offers opportunities for investors to tap into the US recovery. Initial housing statistics such as housing starts, which is an indicator of new house builds, have recently surprised positively, at 706,000 for January, for example. "For a number of years now, new house builds have been stuck around 500,000 level," said Mughal. "The US had a huge overbuild between 2003 and 2006, followed by a massive underbuild post-rece...