Persimmon: Too early to judge Brexit effect on market
Home builder Persimmon has said its too early to judge the effect of Brexit vote on the UK housing market.
Persimmon’s share price has dropped by almost a third since the EU referendum as homebuilders and banks were hit by market uncertainty.
While Persimmon’s chief executive Jeff Fairburn said it is still too early to judge the effect of the Brexit vote his firm’s focus on lower priced deals involving first-time movers and buyers makes it well placed to cope with any turbulence.
“There is some uncertainty among people about what’s happened and that’s natural, but we’ve not seen that translate to any significant change in our trading,” he said.
The vote saw the market value of the UK’s top developers, including Berkeley, Taylor Wimpey, Barratt and Persimmon, drop by a total of £8bn.
Although the stocks have witnessed some recovery, they are still trading below pre-referendum levels, with market confidence rattled by multiple analyst downgrades of the sector, the first suspension of a UK property fund since 2008, and government warnings of a potential drop in home prices.