The FTSE 100 has endured a tough journey to this point this 12 months on worries over thumping international commerce tariffs. Whereas risks stay, I’m anticipating the UK’s blue-chip share index to stay an ideal vacation spot for traders over the long run.

The Footsie‘s delivered a mean annual return of 6.4% since 2015. And I anticipate it to maintain delivering a sturdy return over the subsequent 10 years. However for these searching for index-beating income, I believe the next two FTSE shares are value a detailed look.

Large potential

These seeking to put money into the housebuilding sector ought to give The Berkeley Group (LSE:BKG) a detailed look, for my part. The Footsie enterprise — which focuses on creating residing areas in London and the encompassing House Counties — suffered throughout and within the aftermath of the pandemic. Demand in its areas fell because the enchantment of nation residing took off.

However the tide’s turning, and curiosity in capital-based properties is marching increased.

Encouragingly, the long-term outlook for London’s property market stays as sturdy as ever. In keeping with Statista, London’s inhabitants will rise by virtually one million folks between 2023 and 2043, to 9.8m. This can gas a pointy rise in properties demand and a possibility for native housebuilders.

Below its 10-year progress technique (entitled Berkeley 2035), the builder’s seeking to capitalise on this rising demand and provide imbalance. The plan contains spending £2.5bn on land purchases over the subsequent decade and a £1.2bn funding in its build-to-rent platform.

Within the close to time period, the housebuilder faces extra uncertainty because the UK financial system splutters, casting a shadow over homebuyer affordability. However I consider the strong longer-term outlook nonetheless makes it value consideration.

What’s extra, Berkeley shares carry higher worth than every of its FTSE 100 rivals based mostly on predicted income. Its ahead price-to-earnings (P/E) ratio is 12.3 instances, beneath these of Barratt Redrow (19.6), Persimmon (13.1) and Taylor Wimpey (13.8).

One other discount?

Pushed by its Primark worth trend/life-style unit, the subsequent decade additionally appears like being a brilliant one for Related British Meals (LSE:ABF).

Within the close to time period, gross sales volumes might disappoint if client spending throughout its European and US markets stays subdued. It additionally faces the issue of upper prices, and notably rising labour bills within the UK.

However ABF’s income potential by means of to 2035 is big, with speedy growth set to proceed at its retail unit. The worldwide worth retail market is about to proceed rising sharply over the interval, and Primark has substantial model energy to leverage this chance.

Certainly, the FTSE agency thinks new shops will contribute between 4% and 5% to annual gross sales progress a 12 months. In addition to having a lot scope to develop on the continent and North America, ABF’s additionally more likely to proceed increasing on-line following latest successes with click on & gather.

With a ahead P/E ratio of 11.8 instances, Related British Meals’ valuation is nicely beneath historic ranges (its five-year common P/E is 23.8). I believe this additionally makes it a beautiful dip purchase to consider proper now.