House prices defy the jitters in fillip for Countrywide

HOUSE prices posted a surprise postreferendum jump in July — giving a handy boost to the UK’s biggest chain of estate agents, Countrywide, today.

Nationwide’s index showed average UK prices up 0.5% over a month when most economists were expecting post-Brexit jitters to leave the housing market stagnant.

The lender cautioned that its figures were based on mortgage offers made before the historic vote — meaning a delayed impact on prices — while the market is also heading into its usual summer slowdown.

But investors seized on the good news to pile into Countrywide, whose shares jumped 8% or 19.4p to 266.70p despite a 25% fall in first-half profits to £21.8 million.

Chief executive Alison Platt said the referendum had hit “London, the South-East and expensive prime markets” although the rest of the country had fared better.

The firm — whose shares are still more than 20% below their prereferendum level — maintained its interim dividend despite warning that full-year profits would also fall below last year.

Analysts are backing Platt to ride out the storm. Jefferies’ Anthony Codling said today: “We are revising estimates downwards today to reflect market challenges rather than company shortcomings.”