Listed UK housebuilders are taking some punishment this morning on the back of Michael Gove's cladding plan - they're down 2.5-4.5% while FTSE 100 is flat
Early days of course, but a sign that the market, at least, judges they might be compelled to fork out sizeable sums
Early days of course, but a sign that the market, at least, judges they might be compelled to fork out sizeable sums
...Analysts at the stockbroker Jefferies say the official letter unearthed by #newnight 's @lewis_goodall shows the Treasury is determined that housebulders should pay for remedial action *not* taxpayers - hence the hit to their share prices today...
https://twitter.com/lewis_goodall/status/1479547522712580108?s=20
...don't read too much into market reactions as to the impact/effectiveness of government policy - but it's notable that traders aren't currently assuming Gove's plan will leave housebuilders' profit outlooks unscathed
...Suspect this bit of Gove's letter to the housebuilders alone might explain the shareprice move...gov.uk/government/pub…
...the colossal boost given by Help to Buy to housebuilders' profits is well known (FT article expands) - if such government schemes were likely to be less forthcoming in fututre that alone would justify a share price correction ft.com/content/048fd6…
Housebuilders end trading day 🔽3 to 5%
A bad day for the listed housebuilders 👇
• • •
Missing some Tweet in this thread? You can try to
force a refresh
