Wednesday 28 September 2016

Fears ease in UK property sector

Reuters/Sean Duffy

Published 21/09/2016 | 02:30

City workers walk past Australia's stock exchange index on an electronic board in Sydney
City workers walk past Australia's stock exchange index on an electronic board in Sydney

Three big property services firms in the UK are dropping Brexit uncertainty clauses from their valuation reports for most UK assets as market conditions steady after a sharp drop immediately after Britain's vote to leave the EU.

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The original Brexit clause, seen by Reuters, stated there was a reduced probability that valuers' opinions of the worth of a UK property would exactly coincide with the price its potential sale fetched.

British property was among the sectors hardest hit by Brexit and at one point commercial property funds worth over £18bn were suspended amid high redemptions from investors concerned that property demand and prices would plummet.

Fears over the feasibility of Banca Monte dei Paschi di Siena's rescue plan hit its share and bond prices yesterday, highlighting the challenges faced by chief executive Marco Morelli on his first day in the job as head of Italy's third-largest bank.

Political instability ahead of a referendum on constitutional reforms and a banking system weakened by a deep recession have put Italy back at the forefront of market concerns over the Eurozone.

Meanwhile, the ISEQ overall index of Irish shares declined slightly yesterday at 6076.89, down 32.27 points, or 0.53pc.

Ryanair lost 3.3pc after chief executive Michael O'Leary announced that the airline was shelving expansion plans from Belfast international airport. Mr O'Leary cited exchange rate volatility and an expected slowdown in the UK economy as reasons for the decision. Shares in INM were down 3pc in yesterday's trading.

Shares in travel group Hostelworld rose by more than 5pc.

Irish Independent

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