Are Housebuilders Being affected by “Brexit”?

July 6, 2016

Property stocks dropped on Tuesday with real estate investment trusts dropping after Standard Life Investments suspended trading in a real estate fund and housebuilders slumping on worries about the sector’s outlook after a Brexit.

Taylor Wimpey share price dropped almost 10p down to 121p, Brexit has provided media  with the opportunity to turn a drama into a crisis, and eventually it may become self fullfilling,  market sentiment should change but at what cost and how much damage will be done in the mean time.

Persimmon PLC yesterday released a trading update, they reported that trading through the first half of the year has been strong.

They stated in the trading update that It remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market. They  believe that market fundamentals remain strong, supported by long term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions. They believe their focus on building traditional family housing in attractive locations for all purchasers from first time buyers to home movers will continue to attract customers in good numbers. The Group remains committed to building the new homes across the country that Britain needs. Persimmon shares were down around 7% on the day yesterday.

Read the full trading report for Persimmon PLC click here.

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Letting Agent Talk

Landlords and tenants advised to work together to get through extreme heatwaves

With some areas set to be hotter than Portugal this week, lettings and estate agents across the UK are issuing advice to protect properties ahead of extreme weather Prolonged periods of hot weather across the UK are placing additional pressure on homes, from overheating and poor ventilation to damage caused by extreme temperatures. Today, lettings…
Read More →
Estate Agent Talk

Nearly half of UK home listings fail to sell

A London estate agent has warned that thousands of homeowners across the UK are pricing themselves out of the market by setting asking prices that no longer reflect what buyers are willing to pay. The warning comes after new analysis by Zoopla, covering more than two million property listings between 2023 and 2026, found that…
Read More →
Rightmove logo
Breaking News

Lowest number of new build developments coming to market since 2017

New analysis from the UK’s largest property platform Rightmove reveals that the number of new build housing developments coming to market is at its lowest level since January 2017 The figures are despite the government’s target to build 1.5 million homes over the course of this parliament Higher mortgage rates continue to set a challenging…
Read More →
Estate Agent Talk

What Every Estate Agent Should Tell Clients Before Moving Day

For most estate agents, the job is done once contracts are exchanged, completion takes place, and the keys are handed over. For your client, however, that’s when one of the biggest challenges begins. Moving day has the power to turn months of excitement into an incredibly stressful experience, or a smooth finish to what has…
Read More →
Breaking News

Breaking Property News 9/7/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   PropTech is evolving but WhatsApp is still winning the Property transaction battle A home-moving process that a decade of PropTech failed to fix   Thought leadership by Olivier Jauniaux Founder of NestLink There are a particular series of messages, somewhere in every property chain, that decides whether…
Read More →
Breaking News

Heatwaves haven’t diminished love for south-facing gardens

The latest research from Yopa reveals that despite 81% of people saying they have been avoiding their garden during the recent heatwaves, south-facing gardens continue to be the preferred orientation of choice for UK homeowners, attracting house price premiums of over £20,000 on average. However, the insight from Yopa also suggests that should heatwaves become…
Read More →