£10k to invest! 2 cheap UK shares to buy today

Recent market volatility leaves plenty of British stocks trading on rock-bottom valuations. Here are a couple of cheap UK shares I’m looking to buy today.

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I’m searching for the best cheap UK shares to buy following recent market volatility. Here are two I’d happily spend £10,000 on right now.

Vertu Motors

Sellers of luxury goods face significant uncertainty as the cost of living crisis worsens. But its my belief that car retailers like Vertu Motors (LSE VTU) will profit enormously from soaring demand for electric vehicles (EVs). And this makes the UK share a top buy for me for the near term and beyond.

It’s not just environmental concerns that are driving sales of low-carbon cars. Rocketing petrol and diesel prices — and their impact on customer wallets — are also boosting consumer interest.

A study by motoring consultancy New AutoMotive shows that the cost of running an EV is now 80% cheaper than a car with an internal combustion engine. The news comes as the cost of filling the tank of an average family car has passed £100 for the first time.

Data from the Society of Motor Manufacturers and Traders (SMMT) reveals how solid demand for EVs remains despite soaring inflation. Sales of new battery EVs jumped 17.7% year-on-year in May, latest data shows.

I worry that Vertu Motors faces the prospect of empty showrooms as the car industry faces ongoing production issues. However, the business is enjoying better margins on its new and used vehicles due to tighter supply, reducing a lot of the danger to profits.

Besides, I think that Vertu’s ultra-cheap share price reflects the risks it faces today. At 57.9p per share, the retailer trades on a forward price-to-earnings (P/E) ratio of just 7.7 times.

Vertu’s dividend yield also clocks in at a handy 3.2% at current prices, providing an added bonus.

The Berkeley Group

I already own a couple of FTSE 100 housebuilders in my portfolio. And I’m considering adding The Berkeley Group (LSE: BKG) to the set as the housing market keeps steaming ahead.

Rising interest rates pose a dangers to buyer affordability — and thus newbuild demand — looking ahead. So does the deteriorating UK economy which threatens to damage market confidence.

At the moment though, house prices continue to rise at breakneck speed. And it encourages me to believe that Berkeley and its peers should continue to enjoy handsome earnings growth. Latest data from Halifax shows the average property price in the UK rose 10.5% in May.

I like Berkeley in particular because of its focus on the more economically-stable regions of London and the South East. Official data this week showed that the capital’s economy (along with Northern Ireland) is now back above pre-pandemic levels while other regions struggle.

Finally, Berkeley offers excellent value for money right now. The housebuilder trades on a forward P/E ratio of 10.7 times. It also offers a 5.6% dividend yield at current prices of £42.30 per share. I think this is a top FTSE 100 share for me to buy today.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Vertu Motors. 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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