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%).
The Negotiator 16 December 2019
A re-establishment of confidence in the property market is long overdue. With focused and effective governance, that confidence is sure to make a welcome return and a stronger housing market emerge.