Brexit hits housebuilders’ share prices

Brexit hits housebuilders' share prices



The share prices of four of the UK’s leading housebuilders have plummeted following the UK’s decision to vote to leave the European Union.


Share prices in Taylor Wimpey, Persimmon, Berkeley Group and Crest Nicholson have all dropped following the news last Friday.

At midday on Friday, Persimmon saw a decrease in share price of 24.17%, Berkeley Group fell by 20.79%, Crest Nicholson by 22.24%, while Taylor Wimpey saw a 23.28% decrease.

The dramatic fall in share price comes after the pound fell dramatically against the dollar following the announcement. 

Speaking about the impact the vote is having on housebuilders, Peter Andrew, Deputy Chairman of the Home Builders Federation, said it was too early to understand all the implications.

“However, it is clear that after decades of undersupply we face an acute housing crisis and demand for new homes will remain high. 

“We will continue working with government and others to ensure we can deliver the number of homes the country needs in the coming years.”

Paula Higgins, CEO of the HomeOwners Alliance, highlighted that house sales had also fallen ahead of the referendum.

“No one knows the impact of this momentous vote for the housing market so in the short term the only certainty is uncertainty.  

“This is bad news for financial markets and will probably impact interest rates longer term, so mortgage holders will want to watch this space. 

“We can expect the rate of house price growth to slow nationwide, while in London the limited housing supply could reduce the impact on house prices.”

Berkeley Group declined to comment on the impact of its share price drop, while Taylor Wimpey, Crest Nicholson and Persimmon were yet to comment by the time of publication.



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