Housebuilder share prices drop, following the FTSE 100's slide

Helen Cahill
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Average House Price In The UK Rises 8% In The Year
Housebuilder shares have had a rocky road since the referendum (Source: Getty)

The share prices of housebuilders have fallen in morning trading, following the FTSE 100, which has edged downwards.

Barratt Developments' share price was down 0.81 per cent, Taylor Wimpey's share price was down 0.61 per cent and Berkeley Group's share price was down 0.42 per cent.

After a positive set of results this morning, Persimmon's share price bucked the trend, and had edged up one per cent at time of writing.

Read more: This is what happened to house prices in October

Persimmon said this morning: "Trading over the summer weeks immediately following the EU referendum was encouraging, with the number of customers visiting our sites remaining well ahead of last year. Thereafter, with the start of the autumn selling season, customer activity strengthened in line with the traditional seasonality of the market."

Its been a tough year for housebuilders. Following the EU referendum, there was a sell-off of housebuilders' stock due to concerns about the ongoing health of the UK economy, and a fear that house prices would fall.

Anthony Codling, equity analyst at Jefferies International, said: "Persimmon issued a strong trading update this morning in contrast its rather subdued share price performance of late. We remain positive on the outlook for Persimmon and the wider UK housebuilding sector. We are not building enough houses to fully address the structural imbalance between housing demand and supply and for as long as this situation continues we expect the UK housebuilders to perform very strongly."

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