Brexit risks hit Telford Homes
Telford Homes has warned that negative Brexit sentiment is affecting housing market demand, with buyers adopting a ‘wait and see’ approach as Britain’s exit day looms.
The housebuilder said customers are more cautious when it comes to purchases over £600,000 as they look for price reductions to “offset a perception of higher risk as Brexit gets closer”.
“In recent weeks there has been an increasing amount of negative commentary around the outcome of Brexit and the impact it may have on the UK economy and housing market,” the firm said.
“This adds to a more general downturn in the market for expensive prime homes in London which has been evident for some time.”
Telford added that overseas demand has been stymied by “recent Brexit commentary and talk of increased stamp duty”.
The warning comes as the company attempts to market its new E16 development to Asian investors.
However, the group said that, despite the uncertain backdrop, it has continued to achieve sales at a consistent rate in the last few months, particularly where houses are priced under £600,000, with a significant proportion of customers using Help to Buy.
Telford expects to book more than £50m of pre-tax profit, assuming the market “does not worsen further as the Brexit date approaches”.
First half profit will be lower than the second, but is expected to exceed the £8.7m recorded in last year’s first half.
CEO Jon Di-Stefano said: “Notwithstanding the uncertainty surrounding the outcome of Brexit, the group continues to perform well.”