“The demand for new homes will remain high”

After seeing Housebuilder share prices fall by around 20% today on the back of the UK’s vote to leave the European Union businesses remain positive within the house building industry.

Peter Andrew, deputy chairman of the Home Builders Federation, looked to remind the market that the medium to long term outlook for the industry is sound. “It is too early to understand all the implications of the Brexit vote for housebuilders,” he said. “However, it is clear that after decades of undersupply we face an acute housing crisis and demand for new homes will remain high. We will continue working with government and others to ensure we can deliver the number of homes the country needs in the coming years.”

John Elliott, managing director of Millwood Designer Homes, welcomed the vote: “I am delighted that today is ‘independence day’ for Britain. One of the UK’s biggest assets is our home grown housing market and this will now be much better off out of EU regulation.

“For many years, the EU Habitats Directive has had an unnecessary impact on housebuilding. The mere hint of great crested newts or slow worms on a site, which are prolific in the south east of England, can delay building for months.

“Most recently the EU’s Mortgage Credit Directive effectively means that no housebuilders are able to lend money to buyers unless they register as a regulated financial adviser. When times are difficult, this has been a traditional way for housebuilders to help buyers overcome mortgage downvaluations and other issues, and keep the market moving.

“Our exit from the EU will stop the continual flow of red tape and see our housing market grow and flourish without unnecessary constraints placed on building much needed new homes.”