Britain’s housebuilding stocks fell across the board this morning as Brexit turmoil dented investor confidence in the property sector.
FTSE developer giants including Berkeley Group, Taylor Wimpey and Persimmon all suffered a drop in their share price as markets reacted to the news that Boris Johnson is planning to suspend parliament next month.
Read more: Property of the week
Stocks in UK property companies, which are among the most exposed to Brexit uncertainty, dipped on average by over two per cent in trading this morning.
Berkeley Group’s share price fell 2.47 per cent, while Barratt Developments and Taylor Wimpey both tumbled by roughly 2.3 per cent.
Shares in Bellway, Bovis Homes and Persimmon all also fell in value by more than two per cent.
Boris Johnson has asked the Queen to suspend parliament in a move aimed to prevent MPs from blocking a potential no-deal Brexit by the end of October, when the Prime Minister has vowed to take Britain out of the EU with or without a deal.
The news also sent the pound tumbling this morning, with sterling falling against the dollar and the euro.
Today’s drops come after a tough year for many of the country’s biggest residential developers, particularly in London and the south of England, where deals for more expensive homes have waned in the wake of Brexit-related uncertainty.
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Figures released by HMRC last week showed a marked reduction in the number of property transactions this summer, with a drop of 8.5 per cent in residential transactions between June and July 2019, as well as a 12.4 per cent decrease since July last year.