Brexit result worries the stock market

first_imgHome » News » Housing Market » Brexit result worries the stock market previous nextHousing MarketBrexit result worries the stock marketHousebuilders, banks and property agencies slip and slide as confusion reigns.29th June 20161 Comment1,016 Views No doubt the financial markets will settle down… but the first days after the Brexit decision are proving to be worrying ones. The worst hit companies in terms of share prices, were banks, builders and property companies, which, as quoted on Monday 27th June, included Countrywide, down 18.69 per cent, Foxtons, down 17.5 per cent, while house builders Barratt lost 20.6 per cent; Bellway and Balfour Beatty and Persimmon all lost around 19 per cent.At one point on Monday, shares in Royal Bank of Scotland and Barclays – were suspended after they fell more than 8 per cent, triggering a circuit break mechanism.Meanwhile the so-called challenger banks, Shawbrook, Aldermore and OneSavings also took a hit, apparently due to their exposure in property lending.Foxtons’ share price fall followed it’s press briefing saying that it expected that profits would be “significantly lower” in 2016 from a year earlier.Foxtons’ Chief Executive Nic Budden said, “Whilst we had a strong start to the year, we said in our first quarter update that we expected the first half to be challenging ahead of the EU referendum.“Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands.“The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year.”Even more depressingly, Foxtons said that an expected upturn in the London property market in the second half of the year was “unlikely to materialise.”The ‘Brexit clause’ effectThe Guardian reported that One property developer in central London, which had offered a “Brexit clause” allowing nervous buyers to pull out of deals in the event of a leave vote said it was allowing buyers to withdraw and keep their deposits. David Humbles, Managing Director of the Two Fifty One development, said, “We can confirm that a few purchasers have decided not to proceed given the uncertainty of the market. However, the majority are continuing with their purchase and the marketing strategy to offer the pledge at the launch was a worthwhile exercise.”Others remain confidentHunters, whose Founder and Chairman is Kevin Hollinrake MP, took a small hit, while Belvoir shares stayed steady, Purplebricks held onto its recovery from it’s significant drop on 6th June (from 160p down to 126 and back up to 142p)In the property market suppliers Justin Morris (left), CEO of Dezrez, says its business as usual, “The UK’s decision to leave the EU has created uncertainty in the housing market. And it is now time to think clearly about which challenges and what opportunities are ahead. More than ever, it’s imperative that innovations aren’t stifled and agents have the tools to respond to core business impacts quickly and decisively. And we want to assure our customers that it is business as usual for us.“We are independently owned and have control over our purse-strings and operations. This means there will no change to our product road map and service levels. And estate agencies who want to secure competitive advantage will still benefit from our open API and workflow options to modernise and adapt to this new market.”housing market Purple Bricks stock market ‘Brexit clause’ effect Brexit Brexit result Countrywide dezrez EU Referendum Foxtons June 29, 2016The NegotiatorOne commentCharlene Morris, The Negotiator The Negotiator 5th July 2016 at 10:46 amInteresting times ahead, hopefully all will work itself out in good time.Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles 40% of tenants planning a move now that Covid has eased says Nationwide3rd May 2021 Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021last_img read more