Barratt update offers insight into Brexit impact on property

Housebuilder Barratt Developments will be looked to by the City for any clues on how the property sector has performed after the Brexit vote when it announces its full-year results on Wednesday.

By The Newsroom
Sunday, 4th September 2016, 1:37 pm
Updated Sunday, 4th September 2016, 2:41 pm

The FTSE 100 firm announced the lion’s share of its full-year performance in July, with annual pre-tax profits set to jump by a fifth to £680 million, up from £565.5m last year and in line with expectations.

Revenues are also expected to rise 17% over the period.

The early glance at the housebuilder’s full-year performance means investors will be keen to hear an update on how it has performed since June 23 when Britain voted to leave the European Union.

It comes after investors punished property stocks following the EU referendum result amid fears that the housing market will suffer if the economy takes a downward turn following the Brexit vote.

But the property sector has shown signs of resilience in the months leading up to Britain’s decision to leave the European Union.

Charles Church builder Persimmon said in August that demand was holding up following the Brexit vote, as pre-tax profits rose 29% to £352.3m for the first half of the year.

Bovis Homes also shrugged off heightened uncertainty surrounding the referendum result to book a double-digit rise in profits.

The FTSE 250 firm said in August that the ‘’underlying market fundamentals’’ for the UK housing market remained positive, as half-year pre-tax profits stepped up 15% to £61.7m to June 30, from £53.8m in 2015.