industry news 7 HOUSEBUILDER SHARES
Brexit triggers housebuilder share price falls I
n the aftermath of the UK’s vote to leave the European Union, housebuilder share prices fell by around 20 per cent, on the back of fig-
ures showing a seven-year low in sector output. Housebuilders’ shares were among the worst
hit across the FTSE 100 as the markets reacted adversely to the vote and the resignation of the Prime Minister, prompting warnings of house price deflation. Speaking on the day after referendum Richard
Donnell, insight director at Hometrack, said: “The immediate impact of Brexit is likely to be a fall in housing turnover and a rapid deceleration in house price growth as buyers wait and see what the short term impact is on financial markets and the economy at large. He added: “The decision to leave the EU will
be most keenly felt in the London housing mar- ket, which is fully valued and already facing headwinds.” Paul Higgins, CEO of the HomeOwners
Alliance commented: "No one knows the full impact of this momentous vote yet, and in the short term the only certainty is uncertainty. This is bad news for financial markets and will proba-
COMMENT Awards are helping to change industry’s image
As housebuilders triumph at the recent National Site Awards, Edward Hardy, chief executive of the Considerate Constructors Scheme explains how the awards can help to enhance the image of the housebuilding industry.
on their performance during the construction phase of a project. Dare I say, construction of new homes was considered only as a ‘means to an end.’ Yes, their image was clearly crucial at the marketing and sales stages, but significantly less of a concern during the construction stage. Maybe it was because housebuilders did not
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(and some still do not) consider themselves as a part of the construction industry. This is of course not true. They are at the core of the indus- try. Indeed, building new housing is a key priority for the Government in its target to deliver the 1 million during this Parliament. So, where does image come in? The answer is
easy: everywhere. All stages of the process – pre, during and post construction – need care and attention, to ensure the public and the workforce have an inspiring and positive perception of the
industry. This is what the Considerate Construc- tors Scheme is all about –improving the industry’s image – and firms are now fully embracing the scheme to continually raise their standards. The scheme works through the voluntary reg-
istration of sites and companies, though sub-contractors and suppliers are also able to reg- ister. Every organisation that is part of the Scheme agrees to abide by the Scheme’s Code of Consid- erate Practice. They are monitored by peers on their performance in three areas: consideration
t is not too long ago that housebuilders had a reputation of being one of the least, shall we say, ‘considerate’ industry sectors, based
towards the general public, the workforce and the environment. Every year, the Scheme registers around 8,000 sites and makes around 13,000 site visits, over 3,000 of these being house sites, with figures growing year on year. Over the past five years, a significant propor-
tion of the UK's largest housebuilders have showcased some of the very best practice in the construction industry, demonstrating how they are improving their image. At this year’s Considerate Constructors Scheme National Site Awards, Robert Woodhead scooped one of four of the highest accolades. Berkeley Homes, Barratt Homes, Bellway Homes, Crest Nicholson, St George and United Living were among other firms picking up 2016 National Site Awards. It is very pleasing to see how the sector is
increasingly raising the standards for considerate construction. Firms have achieved truly exceptional performances, and are going way above and beyond compliance with the Scheme.
respond online at
www.hbdonline.co.uk
bly impact interest rates longer term, so mortgage holders will want to watch this space.” “House sales fell ahead of the referendum and
people will continue to watch what unfolds before making any big financial decisions. We can expect the rate of house price growth to slow nationwide, while in London the limited housing supply could reduce the impact on house prices.” Melanie Leech, chief executive of the British
Property Federation called on the Government and the Bank of England to stabilise the situa-
tion: “The effect of the vote has been immediate, and we are already seeing market turbulence and a fall in the pound. The priority must now be to stabilise the position and maintain confidence in the UK.” She added: “There are many unknowns ahead.
Our priority is that Government maintains focus on existing national priorities such as housing and makes swift decisions on major infrastruc- ture projects, such as airport capacity and maintaining momentum around HS2.”
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