Housebuilders hit by hung parliament

London-listed housebuilders slumped on Friday as investors woke up to news of a hung parliament, after PM Theresa May failed to get the seats needed to deliver a majority government.
With just days before Brexit negotiations are due to kick off, May has fallen short of the 326 seats needed to deliver a majority Conservative government in the 650-seat House of Commons, leaving the UK in political limbo.

Shore Capital pointed out that the UK housing market was already losing momentum with signs of growing caution by potential home buyers, adding that the uncertainty that is likely to follow this election result can only consolidate this. The brokerage noted that the housing market does not bear uncertainty well and said that with a number of question marks over issues such as what direction Brexit negotiations will take or which way housing policy will go, that uncertainty is likely to grow.

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