On Friday 24 June 2016, share prices in housebuilders
fell dramatically as a result of the UK voting to leave the EU the
previous day. However, over the past 2½ years, the
residential development market has remained remarkably buoyant with
the industry adopting a "business as usual" attitude,
notwithstanding the political uncertainty.
Perhaps the reason for the resilience shown in the sector is
because Brexit does not change the underlying condition. There is a
housing shortage in the UK, with year on year under supply that the
Government, in its 2017 manifesto, promised to address.
Neither does there appear to be any significant change in
government policy on housing in a post Brexit world. The Ministry
of Housing, Communities and Local Government single departmental
plan issued in May 2018 sets out Government intention to increase
housing supply to "deliver 300,000 net additional homes a year
on average". It is however, recognised by Government that the
majority
