...continued strength in the UK housing market as we have had a few announcements today. Two from Inland Homes (INL) and M.J.Gleeson (GLE) relate to development land sales suggesting that there is still good demand for land, especially in the South East. In addition we had strong looking results from Berkeley Group and a further special dividend as expected.
However the experienced Chairman there, Tony Pidgley, was quoted in this article as saying "while the recent general election had brought stability, but warned that upcoming mayoral elections and uncertainty over Britain’s role in the Eurozone could impact business. “Berkeley is a supporter of the UK remaining in Europe as this is the best way for London to remain a world city," said Pidgley. "
Now I guess that makes sense for Berkeley Group given their emphasis on London in particular and I guess the uncertainty or even an unexpected vote to leave could diminish the attractions of the London property market and as has been reported could also cause some large banks like HSBC & JPM may move parts of their operations to Luxembourg as has been rumoured in the event of an out vote.
For the rest of the industry which is probably more nationally based in general this uncertainty should not have too much effect on demand for houses in the short term. However, I guess if there was an out vote and if the government did then eventually get to grips with immigration then that could reduce some of the demand push, but a couple of ifs there so I wouldn't worry about that just yet.