UK Housebuilding Sector: 2016 and beyond

Hardman & Co

Hardman & Co ReportIt was Arthur Holly Compton, a physicist and winner of the Nobel Prize in physics in 1927, who invented speed bumps; and they were first used in New Jersey in the US in 1906.

Widely employed now, this family of traffic calming devices uses vertical deflection to slow down motor vehicle traffic in order to improve safety conditions.

But they are not without their detractors and have been blamed for increased traffic noise/pollution, slower response times for emergency vehicles and, in Sweden, spinal stress in bus drivers.

Similarly, Brexit in the UK has its supporters and vilifiers, in almost equal measure, and on 23 June last year what should have been a jounce for the Housebuilders became something more seismic as the Sector subsequently lost 36% of its value.

This was more a speed wall than a bump (see chart overleaf) and although the Sector sedan drove carefully thereafter – there was still a 15% penalty in terms of value at the end of 2016.

It is also the case that the movement of share prices in most of Q3 and all of Q4 resembled an elongated speed bump warning sign i.e. velocity increased on positive news flow only to decelerate when it met the sleeping Brexit policemen.

But money has been made and more will be on offer as we expect this oscillation to continue; and in the first short trading week of the New Year, share prices rose 3.6% on average with three of them – Persimmon, Taylor Wimpey and Crest – up by 9 to 10%. Empirically, though, it is proven that driver selection and lap counting are critical.

Share on:

Latest Company News

ATR expands its role in Africa’s underserved regional aviation market

ATR is expanding across Africa by targeting the routes others overlook and backing it with long-term operational support.

Touchstone Exploration revives Trinidad gas block with new drilling push

Touchstone Exploration restarts drilling in a dormant Trinidad gas block, aiming to double output through focused redevelopment.

Tekmar strikes £8 million deal in UK offshore wind push

Tekmar’s new £8 m UK wind‑farm contract signals a shift from opportunistic project wins to a structured, multi‑year order pipeline in subsea energy infrastructure.

Hercules enters Scottish market, targeting infrastructure labour shortages

Hercules has opened its first Scottish office in a strategic move to meet rising labour demand across major infrastructure and energy projects.

NB Private Equity Partners 2025 CMD: good returns from low-risk PE model

NB Private Equity Partners reports continued strength across its portfolio, supported by solid operating performance in its larger positions and a maturing set of holdings that are increasingly ready for exit.

Ilika: Building a bridge from niche batteries to mass market demand

Ilika is translating niche micro-battery expertise into a larger bet on scalable solid-state solutions for EVs and energy storage.

    Search

    Search