黑洞社区

Shares in UK housebuilders slumped today as MPs and the business community digested the implications of the government鈥檚 proposed EU withdrawal agreement 鈥� .

In what is likely to be a moveable feast on a day of high political drama in the House of Commons as prime minister Theresa May attempts to sell the agreement to MPs, shares in the likes of Bovis and Persimmon fell sharply.

Bovis, which highlighted Brexit concerns in a trading update published earlier today, saw its stock slip by 7%, as did Persimmon, which recently announced the imminent departure of its chief executive Jeff Fairburn, following the adverse publicity over his pay package.

Shares in Berkeley Group and Redrow also fell, at one point by 5%, as investors took stock of what the ongoing uncertainty might mean for some firms.

The prospect of a 鈥榥o-deal鈥� Brexit was a 鈥渘ightmare鈥� for the market and a big cause of uncertainty around housing demand, said Cenkos analyst Kevin Cammack, although 黑洞社区 Value鈥檚 Tony Williams believed a deal of sorts would be thrashed out, eventually.

鈥淭hese share falls are purely related to today鈥檚 headlines. A 鈥榥o-deal鈥� Brexit would result in a sharp decline in economic growth and a very difficult year to come. But I don鈥檛 think that is going to happen,鈥� he added.

The withdrawal agreement suggests a transition period of 21 months from the end of 2020, whereas the construction industry earlier this year indicated it wanted a minimum of five years in a 黑洞社区 poll.

Only 10% of respondents to the survey believed the government cared enough about the construction sector to get a good deal.