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The UK’s Construction Industry Bounces Back after Brexit

The impact of Brexit on the construction industry has been minimal despite fears of a crash, according to three of the UK’s biggest housebuilders.

The impact of Brexit on the construction industry has been minimal despite fears of a crash, according to three of the UK’s biggest housebuilders.

Defying fears of a halt in construction following Brexit, three of the UK’s top 10 housebuilding companies; Barratt Developments, Redrow and Berkeley Group, claim to have experienced little or no adverse impact to their financial performances since the vote.


David Thomas, Barratt’s chief executive, said the firm’s annual performance had not been impacted by the vote as demand for property remained strong and as a booming mortgage market has led them “to build and sell plenty of homes.”


Barratt Developments also published performance results showing a 21% increase in pre-tax profits - culminating in £682 million of revenue in the lead up to the referendum.


Similarly, Redrow reported earlier this week that their annual pre-tax profits had also increased, rising by 23% to £250 million.


In the immediate aftermath of the referendum, Redrow also released a statement claiming that the housing fundamentals remain unaffected, as decades of undersupply means that the UK housing market is unable to meet the underlying and growing demand.


Providing a more comprehensive account, Berkeley Group said that whilst the firm saw reservations for new homes fall by 20% in the lead up to the vote, the market in August has returned “to the relative levels reported for the first five months of the year”.


The Berkeley Group also stated that whilst, as expected, the rate of reservations fell temporarily following the referendum result, they have now returned to normal levels and that pricing has remained steady.


Earlier this month, the latest house price index from Nationwide revealed that house prices had also remained resilient following Brexit, with the average value of a UK property increasing by 0.6% in August.