Pessimism about house prices is blowing a chill wind through the stock market as UK’s leading builders – as well as Countrywide and Zoopla (ZPG) – saw their share prices dip.
Monday’s FTSE 250 opened with Countrywide shares falling by 7.2 per cent to 233.7pence; ZPG fell by 2.2 per cent and Crest Nicholson fell by 1.3 per cent.
The falls are not desperate, but they are an indication of the concerns about the stability of the housing market since the EU Referendum result. Richard Donnell (left) at Hometrack said, “It is still early days, and seasonal factors also need to be considered but the growth in new listings and slower sales points to slower price growth in the months ahead. This growth in supply reflects a mix of new homes filtering through from London’s expanded development pipeline, investors looking to take capital gains, or selling to de-leverage their investments following the reduction in tax relief on mortgage payments for buy-to let investors.”