Housebuilder share prices take a hit due to uncertainty over the outcome of the EU referendum

Helen Cahill
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The property market faces uncertainty (Source: Getty)

Housebuilder share prices took a hit this morning as uncertainty over the outcome of the EU referendum cast a shadow over the property market.

Taylor Wimpey shares were down 1.53 per cent in late morning trading to 186.20p, Barratt Developments shares dopped by 1.41 per cent to 559.00p and shares in Berkeley Group were down 1.85 per cent to 3,179.00p.

Read more: Experts have predicted house prices will drop for the first time since 2012

Property portal Zoopla's shares also dropped, down by 1.90 per cent to 316.10p near lunch time.

The movement follows a report from the Royal Institution of Chartered Surveyors (RICS), out this morning, which predicts house prices will fall for the first time since 2012 in the next quarter.

Anthony Codling, equity analyst at Jefferies International, said: "I think this is to do with the RICS review this morning suggesting there will be some short-term weakness in house prices.

Read more: Home lending slowed in May as Brexit worries weighed on the property market

"This is interesting given housebuilders are saying that everything is going well for them. I'm actually surprise they're down over the referendum, which is a short-term impact."

"House prices are very emotive because houses are generally people's biggest asset, so if they think house prices are going up then all is well in the world - if not, they feel the opposite."

On the report, RICS chief economist Simon Rubinsohn said: "it appears to me that what we are looking at is a short-term drop caused by the uncertainty resulting from the forthcoming EU referendum, coupled by a slow-down following the rush to get into the market ahead of the tax change on the purchase of investment properties."

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