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

Adding second coat of varnish floor boards
Home and Living

The Foundation of Your Home: Why Your Subfloor Dictates Your Flooring Destiny

In the field of residential and commercial renovation, the aesthetic selection of a floor covering—be it the grain of a hardwood plank, the texture of a stone tile, or the finish of a luxury vinyl—often commands the most attention. However, from a technical perspective, the long-term performance and durability of these materials are entirely dependent…
Read More →
Breaking News

Almost £1.4m difference in property prices between the start and finish lines of London Marathon

The latest property market analysis from London’s number one lettings and sales estate agency brand, Foxtons, has revealed that there’s a difference of almost £1.4m in the average sold price from the starting point of the London Marathon and the finish line. As London’s largest estate agent, Foxtons holds an unrivalled view of the London…
Read More →
Rightmove logo
Breaking News

Demand drops year-on-year for commercial property from high base

Three out of four of the main commercial property sectors saw a yearly decline in demand both in terms of leasing and investment in the first quarter of the year, amid speculation about interest rate hikes following the start of the war in Iran. According to Rightmove’s Commercial Insights Tracker for Q1 2026, the office…
Read More →
Breaking News

Property market is improving

Property market is improving, but more sellers are cutting prices and withdrawing from the market The latest market data analysis from House Buyer Bureau has found that whilst the property market is showing signs of improvement, more sellers are still being forced to cut their asking price, endure a failed sale, or withdraw from the…
Read More →
Letting Agent Talk

How much to live along the London Marathon Route

Local lettings and estate agency, Kinleigh, Folkard & Hayward, reveal the costs to live along the iconic route – from the start in Blackheath to Greenwich all the way to Tower Bridge Sunday 26th April sees the iconic London marathon – the world’s biggest annual one-day fundraising event – return to the streets of London.…
Read More →
Home and Living

FIVE food cupboard cleaning products that beat the branded – all under £1.50!

Use white wine vinegar to get rid of yellow pillow stains Many cleaning products Brits already have in their food cupboards Cleaning expert on five cleaning products that can help clean your bedroom From limescale to stubborn stains, many household messes can be tackled with items that are probably at the back of your food…
Read More →