Housebuilder Barratt Developments (BDEV) breaks a run of positive reactions to updates from the sector - down 2.6% to 470.3p.

Like most of its peer group Barratt is broadly reassuring about the state of the market in the wake of the Brexit vote, but the tone of its statement is perhaps a little more downbeat.


Forward sales are up 4.3% year-on-year since July but the company reports more 'challenging' conditions at the top end of the market in London and more generally is 'mindful of the potential for economic uncertainty created by the outcome of the EU referendum'.

Like its peer Taylor Wimpey (TW.) it also flags a shortage of skilled labour.

More positively Barratt does point to solid fundamentals, including an under supplied market, supportive Government policy - including the flagship Help to Buy scheme - and good mortgage availability.

ETX Capital analyst Neil Wilson says: 'It's hard to think of easier market conditions for housebuilders, which is perhaps why investors seem not that impressed by today's trading statement.'

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Issue Date: 16 Nov 2016