House Builders get demolished in the markets.
One of the major downsides to the UK voting out last thursday was the negative reaction across the markets, the FTSE dropped the least when compared to other exchanges, the Brexit vote has caused an air of uncertainty that extends far beyond the UK and Europe and looks like continuing for some while yet.
One of the stock market sectors that was affected the most by the drop in shares values was the House Building sector, Taylor Wimpey saw one of the biggest falls in its share price at around 30%, others that suffered similarly were Persimmon, Crest Nicholson, Bellway and Bovis Homes Group.
There are expectations that demand for new houses will fall over the next 6 months as a direct impact from the decision to Brexit. House prices are also expected to fall because of the short term uncertainty over the economy, by how much and for how long is anyones guess, some might say that prices were overheated anyway and Brexit is as good a reason as any for a cooling of property prices to take place.
A pullback in house prices would be good news for younger people who at present are struggling to get their foot on the housing ladder, the last year has seen house price growth across the country that is quite simply unsustainable.