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McCarthy & Stone says housing cancellations rise following Brexit vote

Published 02/09/2016, 08:52
© Reuters. The Wider Image: Clacton-on-sea: town that voted Brexit
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(Reuters) - McCarthy & Stone Plc (L:MCS), Britain's biggest builder of homes for retired people, said it had seen fewer new house reservations and an increased level of cancellations following the country's vote to leave the European Union.

The company said on Friday it had seen some weakness in the housing market since its last trading update on June 29, when it raised concerns about its ability to meet its sales volume growth target of about 15 percent for the year to Aug. 31, 2017.

Property was one of the sectors hardest hit by the June 23 referendum, with the biggest builders and estate agents seeing their share prices plunge and investors pulling money from commercial funds, leading many to be suspended.

However, some builders and data has indicated some stabilisation of demand in recent weeks. Persimmon for instance (L:PSN) said in late August it had seen a jump in reservations by new home buyers over the last two months.

House prices picked up speed in August and households recovered some confidence, which had plunged after June's Brexit vote, according to surveys out earlier this week that added to signs of calm among consumers after the unexpected referendum result.

McCarthy & Stone, whose business is slightly different as it is a residential landlord for retirees, said on Friday that while there had been some improvement in consumer sentiment in August, it was too early to know whether the improved conditions would persist through the rest of the current financial year.

© Reuters. The Wider Image: Clacton-on-sea: town that voted Brexit

Legal completions increased by 20 percent, as previously targeted, to 2,299 units in the year ended Aug. 31, 2016, the company said, though it had had to offer increased incentives to buyers to meet its forecast.

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