The UK’s listed property companies remain shaken by uncertainty over the future of the Prime Minister’s Brexit withdrawal agreement.
According to consultant Building Value, a property slump remains in effect. The total value of British housebuilders fell by £3bn, or 8.1%, over the week, making it the worst-performing week for the sector since the referendum., when housebuilder value fell by 18.1%.
Large REITs in the UK were also affected by the resignation of Dominic Raab, Brexit Secretary. That day, British Land shares were at 5.7%, there was a 4.5% fall in Landsec shares, and SEGRO shares fell by 3.1%.
Duncan Owen, global head of real estate at Schroder Real Estate Investment Management, said that during the course of one week, the possibility of a difficult Brexit shot from 10 to 50%, which affected sentiment and made people nervous.
Mike Prew, real estate analyst at Jeffries, said that the current political unrest was making current weaknesses within the sector more glaring rather than actually causing them.
Mr. Prew said that while Brexit was an important issue, CEOs who talk about valuation reductions or downgrades in business and blame it on Brexit will have problems in the future.