Property companies' share prices climb again after a difficult three days

 
Helen Cahill
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The sun is rising for property companies (Source: Getty)

After a difficult three days of trading for companies in the property market, things are looking slightly sunnier this morning.

The increases today follow the news that house prices rose in June - but analysts are predicting house prices will fall in the second half of this year.

Housebuilders

Persimmon's share price climbed 6.9 per cent, Berkeley Group's was up by 3.48 per cent and Taylor Wimpey's share price rose 6.47 per cent.

Bovis Homes' share price increased by 3.75 per cent, after the company announced this morning that it built a record number of homes in the first half of the calendar year and that is average sales price rose 15 per cent.

Read more: Asset managers close the gate on £15bn-£20bn funds

Barratt Developments' share price was one of the worst hit yesterday, but this morning was up by 5.57 per cent.

7 July 2016 @ 9:30amBarratt Developments (BDEV)

Commercial property

Land Secutities' and British Land's share price were up by 6.40 per cent and 5.33 per cent respectively, despite worries about the future of the commercial real estate after several property funds had to close yesterday because investors were withdrawing too much money.

Estate agents and property development

Savills' and Foxtons' share price were up by 0.46 per cent and 1.55 per cent respectively. Great Portland Estates' share price rose by 4.97 per cent.

Mike van Dulken, head of research at Accendo Markets, said: "UK housebuilders and Real Estate Investment Trusts are delivering a surprise bounce this morning despite a seventh fund saying it had bolted its gates to investors wanting to cash out.

"This takes the value of frozen real estate funds to more than half of the sector’s £25bn total; both a good and bad thing.

"On the one had it’s like saying ‘don’t panic’, which simply makes investors want to cash out pronto for fear of being last out with the worst price. On the other hand it’s cleverly avoiding unnecessary selling pressure, meaning little has changed."

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