Taylor Wimpey: Post-Brexit property market is ‘encouraging’
Housebuilder Taylor Wimpey has shrugged off the possible effects of the decision to leave the EU on the property market describing it as “encouraging”.
Its latest investor update revealed that trading was yet to be impacted by the fallout of the referendum.
There have been a number of predictions about the prospects of the property market following the decision to leave – most notably when French bank Société Générale warned of a potential 30% being wiped of London property prices (read here).
But Taylor Wimpey appears optimistic about the markets future.
It said: “Whilst it is still too early to assess what long-term impact the EU Referendum result will have on the UK housing market, there has been no meaningful change to date, with trading in the last month at a normal seasonal range with a net private sales rate of 0.65.
“The net private sales rate for the year to date (w/e 24 July 2016) is 0.77 (2015 equivalent period: 0.78).
“Since 24 June, the early forward confidence indicators amongst homebuyers, together with the continued competitive lending by mortgage providers, have been encouraging and support confidence in the resilience of the UK housing market.
“We are monitoring both our own internal measures of customer confidence and external data closely.”
However it did warn that the longer-term impact of the referendum is uncertain.
In general the housebuilders results were positive with profits and revenues increasing from the same period in 2015.