Shares in almost every property-related public limited company jumped significantly on Friday following the decisive Conservative party General Election announced early that morning.
City stock market traders clearly expect their to be an economic and housing market revival following the election, and have hoovered up shares speculatively in expectation of increased turnover and profits at all of the key housing and property companies.
The FTSE all-share index jumped by 1.5% on Friday but shares in the UK’s leading estate agent and house building companies ticked up by significantly more.
These include Savills (+13.5%), Purplebricks (+9.5%), Belvoir (+8.6%), Countrywide (+7.14%) and Foxtons (+5.4%) with other company’s share prices rising less significantly.
Only one company, Martin & Co parent company The Property Franchise Group, failed to benefit from the post-election City trading optimism; its shares dropped in value by 1%.
Shares in UK house builders also jumped including at Taylor Wimpey (+14.63%), Barratt Developments (+14%) and Berkeley Homes (+13.99%).
“Whichever way you voted, the brakes are off for estate agents. I suggest a no-holds barred marketing push for pre-Christmas instructions now the uncertainty is over,” says property business guru Richard Rawlings (left).
“The signs are that if the government can achieve a period of stability through demonstrating a clear path to Brexit, which seems likely that there will be a mini boom in confidence and house prices,” says property investment guru Mark Homer of Progressive Property (right).
“I expect the purchasing managers index and GDP growth to reflect this by the later part of 2020.”