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

Breaking News

£50k hit when climbing the property ladder

The average homeowner in England faces an estimated £15,513 in associated costs when upsizing their home, according to the latest research by Yopa. However, in London this figure climbs as high as £47,704. The full-service estate agency analysed the estimated cost of upsizing across England, based on selling an average flat or terraced home and…
Read More →
Estate Agent Talk

Conveyancing causes more stress than property chains

The latest research by Lyons Bowe has found that 42% of recent homebuyers say conveyancing is the biggest barrier to a smooth property transaction, compared with just 19% who point to property chains. The survey of 1,000 recent homebuyers* examined which aspects of the transaction process had presented the biggest barriers to a smooth journey,…
Read More →
Rightmove logo
Breaking News

Britain’s most competitive summer rental hotspots

New analysis from the UK’s largest property platform Rightmove has revealed the areas where renters faced the strongest competition this summer, with several North West towns emerging as the toughest places to secure a home Wallasey and Birkenhead in Merseyside were Britain’s joint most competitive rental market during July and August, with an average of…
Read More →
AI in estate agency letting agency property
Letting Agent Talk

The 5 tasks lettings agents won’t trust to AI

AI must make lettings more human, not less, and that requires real rental intelligence. The latest research from Propoly has found that letting industry professionals see a clear role for AI in property management, but are reluctant to let it operate without human oversight, particularly when decisions involve people, complex circumstances or potentially significant consequences. Propoly…
Read More →
Breaking News

Foxtons Lettings Market Index – August 2026

The busiest weeks arrived earlier than usual, with activity spread more evenly across the summer due to implementation of the RRA • Renter registrations eased 3.0% in August. Along with July, it was still the peak of 2026, finishing off the summer rush just below July’s levels. • Competition for available property rose 22.4% in…
Read More →
Breaking News

Three-quarters of homebuyers hunt after 5pm

Britain’s property hotspots where estate agency branches are handling the most sales revealed The latest internal data from Street.co.uk has revealed that estate agency branches using the platform are handling an average of 4.7 property sales per branch each month across Britain’s major cities, some two properties more per branch than the estimated wider market…
Read More →