As post-Brexit referendum vote shockwaves continue to reverberate around stock markets and currency exchanges, many publicly-quoted property companies took a hit yesterday.
At one point Countrywide was down by around 55 points, or 20 per cent; hybrid agency Purplebricks was down as much as 25 points, or over 15 per cent; and Foxtons ended the day down 30.5 points or 22.6 per cent.
For Foxtons, the falls accelerated after it released a profit warning that the expected upturn in the housing market in the second half of 2016 is “now unlikely to materialise”.
Chief executive Nic Budden told the City: “Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands. The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year.”
Portals Rightmove and Zoopla were less sharply hit but nonetheless suffered. At midday yesterday Rightmove was down over 350 points, roughly 10 per cent of its value, while Zoopla was down approaching 35 points or roughly 12 per cent of its value.
Most prices recovered at least slightly by yesterday’s close, after a tumultous day on the stock exchange for property-related companies.
While most sectors remained relatively unscathed the banks, big multi-nationals and property firms - especially house builders - took some spectacular hits.
Since the close of trading yesterday the UK has lost its top AAA credit rating from ratings agency S&P because of the Brexit vote; rival agency Fitch lowered its rating from AA+ to AA, forecasting an "abrupt slowdown" in growth in the short-term.
These may well trigger further share price volatility today.