Estate agents sink as fear of property slump builds

SHARES in estate agents and housebuilders crumbled following a set of poor results and a major survey pointing out weak foundations in the London market.

Redrow reported that, despite ‘buoyant’ sales in the first quarter, it had witnessed a recent slowdown in sales, due to political and economic uncertainty.

Analysts at Shore Capital said the statement was ‘more cautious than expected’ adding that updates expected by housebuilders next week were likely to have the same tone.

Net private reservations in the 18 weeks to November 3 were 2pc higher compared to a year earlier, Redrow said, at 1,548. Redrow plummeted to 597.5p at market close, a fall of 6.9pc, or 44p.

This, and a dire report on the outlook for the housing sector published by Royal Institution of Chartered Surveyors, was a double blow to housebuilders.

House prices are falling in London, the South East, East Anglia and north-east England, according to the survey, which painted a gloomy picture of the market with fewer buyers and sellers, in addition to falling sales.

Shares in Barratt, Persimmon and Taylor Wimpey were also down and were among the biggest fallers in the FTSE 100.

Estate agents also suffered, with shares in Countrywide toppling 2.9pc, or 3.75p, to 125p after quarterly revenue had fallen 7pc compared with a year earlier.

The firm’s boss, Alison Platt, said the market for housing transactions remained ‘challenging’ and is likely to be lower overall this year in contrast to 2016.

It is expecting full-year results to be towards the ‘ lower end’ of market expectations.

Shares in fellow estate agents Purplebricks, Countryside, and LSL Properties also closed down.

Despite positive half- year results, car buyer and seller Auto

Trader’s share price went into reverse after a brief acceleration. Shares spiked following news revenue was up 7pc to £165m compared to six months earlier, but then rolled lower to end the day down 4.9pc, or 17.2p, at 335.1p. Meanwhile, car dealership chain

Lookers was jump-started after a trading update confirmed it would meet expectations despite poor new car sales figures for October published earlier this week.

However, it still expects sales to fall by around 5pc this year, the first decline since 2011. Shares closed up 2pc, or 2p, to 100p.

Hikma Pharmaceuticals briefly dropped to its lowest price in four years, ending 4.1pc, or 42.5p, at 998.50p lower after it said it was in dispute with the US Food and Drug Administration over plans to produce a new alternative to GlaxoSmithKline’s Advair asthma treatment. Hikma has cut back on revenue guidance for its generics business, which the asthma treatment would fall under.

Vectura, which has been working with Hikma to develop the product, also fell – to 90.7p, down 6pc, or 5.75p.

Making its debut on the London Stock Exchange was pure-plate tin company, AfriTin. It is the only tin-dedicated firm to list on London’s AIM. Listing at 3.90p, shares were up 1.3pc, or 0.05p.

Uranium shares surged as Canadian giant Cameco announced it is suspending some mining and milling operations, taking out 10pc of uranium supply. The news was seen as positive for uranium producers, raising spot price pressure. Oversupply has depressed prices and hit Cameco. AIM-listed uranium miner Ber

keley Energia saw shares rise by 8.6pc, or 3.88p finishing on 48.75p.

Australian-based Aura Energy, which has uranium projects in Europe and Africa, also finished trading up 14pc, or 0.18p, to 1.4p.