There are plenty of people suggesting that the roof will fall in after a disorderly Brexit, but yesterday talk of a deal being agreed between Westminster and Brussels was enough to give housebuilders’ shares a much-needed boost.
Persimmon led the way in the FTSE 100, closing 131½p, or 7 per cent, up at £19.95½. Berkeley rose 193p, or 6 per cent, to £34.23, Barratt Developments added 23p to 473¾p and Taylor Wimpey put on another 5½p to 137p. In the FTSE 250, Bellway rose 143p to £26.45, Crest Nicholson added 12p to 337p, Bovis Homes closed 31½p stronger at 880p and Redrow ended 28½p higher at 496¼p.
A no-deal Brexit may well hurt the sector as it would dampen consumer confidence, push sterling lower and increase labour and building costs.
The Bank of England has warned that house prices could fall by 30% in the event of this hardest of Brexits.
