After the referendum result last summer, shares in all the quoted housebuilders fell precipitously, in some cases to ridiculous levels in terms of earnings multiples and dividend yields, on the assumption that the ensuing uncertainty would put people off buying homes. This column argued then that this was a wild overreaction and so it proved. The various metrics including completions and average prices resumed their relentless march upwards with barely a hitch.
After the general election result the sector was on the slide again, on a similar assumption. Again, the political uncertainty does not seem to have put off housebuyers, given continuing low interest rates and support from Help to Buy. This last point is of particular help to Persimmon, the country’s second biggest housebuilder,