Housebuilders’ share prices struggle towards the pre-referendum summit after positive outlook from Telford Homes and Countryside
Telford Homes' share price jumped 4.7 per cent in early morning trading after the company issued a confident trading update, pulling other housebuilders towards their pre-referendum prices.
Countryside Properties' shares were also on the up – increasing 3.5 per cent at time of writing – when the housebuilder said any impact from the June referendum had been mitigated.
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Telford Homes, a developer focussed on non-prime London locations, said there has been an increase in sales over the last six weeks and that the Brexit vote has not lead the company to revise its growth targets.
"Since the start of September greater interest levels and more visitors to the central sales centre have resulted in an increased number of reservations," Telford Homes said.
"Long term imbalance between the supply of homes and the demand for somewhere to live in non-prime areas of London underpins future prospects for Telford Homes."
Countryside said total completions increased 12 per cent in the year to the end of September, and its forward order book has hit a record £225.4m, up 64 per cent.
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Housebuilders' share prices more generally were helped by this positive outlook for the industry. Persimmon's share price increased one per cent in morning trading, Berkeley Group's share price was up 1.15 per cent and Taylor Wimpey's share price was up one per cent. Barratt Developments' share price was up 1.4 per cent.
But the big builders are still struggling to regain the major losses they sustained on the day that the EU referendum result was revealed.
