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Property industry shares fall as Parliament is suspended

Boris Johnson's decision to ask the Queen for permission to extend the summer recess sends shock waves through City investors.

Nigel Lewis

Link to Stamp Duty news property industry

Shares in almost every property industry company weakened yesterday as the London stock exchange took fright at Boris Johnson’s successful bid to suspend Parliament next month.

Shares in Foxtons, Countrywide, Rightmove, Savills and Purplebricks all dropped yesterday, while shares in The Property Franchise Group, LSL and OnTheMarket saw recent share price rises grind to a halt.

Only Belvoir saw an increase during frenzied share trading, rising by just under 1%.

The UK’s leading house builders also saw their shares drop including Barratt, Bellway, Persimmon, Redrow and Taylor Wimpey, whose shares fell by up to nearly 4%.

City investors are clearly worried that Johnson’s attempt to circumvent parliament and push through a hard Brexit is likely to damage the economy and in particular the fragile housing market.

Suspend Parliament

Yesterday Boris Johnson successfully requested permission to suspend Parliament during the run up to the October 31 Brexit deadline.

The political gamble the move represents has been highlighted by a YouGov pole of 5,734 people following the announcement, which revealed that only 27% backed the suspension of Parliament to force through a Brexit deal.

The figures are very different when the poll’s results are focussed in on Conservative and Leave voters, half of whom believe it is acceptable to shut down parliament.

Labour leader Jeremy Corbyn has called the move an ‘attempted coup’ and a ‘threat to our democracy’ and, unusually, has been joined by some Conservative MPs in calls for a general election prior to October 31st.

August 29, 2019

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