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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Real Estate

UK housebuilders shrug off new Countrywide report

Taylor Wimpey added 2.41% to be Footsie's biggest gainer, while Barratt Developments plc added 1.84% to 459p a pop.

The UK's big housebuilders today shrugged off a new report, predicting property prices would drop 1% next year in the wake of the Brexit vote.

Taylor Wimpey PLC (LON:TW.) added 2.41% to be Footsie's biggest gainer, while Barratt Developments plc (LON:BDEV) added 1.84% to 459p a pop.

The latest study on prices, perhaps one of the most talked about of all Brexit topics, comes from Countrywide, the estate agent and property firm.

It reckons growth in 2016 will slow to 2.5% and then decline 1% in 2017 as economic uncertainty takes hold.

London is likely to be the worst affected, where the rises in recent years have been most acute, but all regions will feel the effects, the group reckons.

Households across the UK will lose confidence , it reckons, and although demand for homes is there, people will fret over their jobs and long term future.

But, Countrywide expects this to be a relatively short-lived blip, with prices recovering to 2% growth the very next year - in 2018.

It may mean good news for those struggling to get on the ladder, but even so the falls in prices will not be particularly start, reckons Countrywide.

More significant may be the very low interest rate environment, which mean people can borrow money to buy homes more easily.

The EU referendum on June 23 saw 52% of voters opting to come out of the EU.

Since then, the UK has a new Prime Minister - Theresa May- and the exact nature of the exit is not yet known, or indeed when Article 50, which starts the process, will even begin

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