A clearer picture on the perceived slowdown of the UK’s property market will emerge next week when three of the biggest housebuilders report their latest figures.
Taylor Wimpey, Barratt Developments and Bovis Homes will provide trading updates which may mirror recent reports from sector rivals of slowing sales and prices.
As PA reports, shares in the sector have been under pressure after builders Persimmon and Redrow sparked fears with their updates in recent days.
Persimmon suggested flat sales in its thinly detailed update, while Redrow said “ongoing political and economic uncertainty” caused sales to slip in recent weeks and estate agent Countrywide also warned over falling transactions.
These bearish reports come after a survey from the Royal Institution of Chartered Surveyors (RICS) showed house sale levels are flat or falling across large swathes of the UK.
Prices under pressure
The RICS report revealed homes are taking longer to sell, as well as a declining interest from buyers amid a shortage of new properties for sale, while asking prices for top-end homes are also coming under pressure.
There are also fears that this month’s interest rate from 0.25% to 0.5%, the first for a decade, could, in addition to Brexit uncertainty, put off buyers.
Taylor Wimpey is first up with its trading update on Monday, with analysts at Numis Securities expecting it to confirm more moderate growth after a 9.3% surge in sales volumes over the group’s first half.
It still expects an 8.4% rise in full-year profits from Taylor, although the City will be eyeing comments on current trading closely for more signs of woe in the market.