Construction and property bosses appealed for calm this morning after the country voted to leave the European Union.

The result sent shock waves through the financial markets as the pound tumbled and the stock market lost 8% in early morning trading.

House builders were among the hardest hit with 40% falls in some big names like Taylor Wimpey.

Leave won a shock victory with a 52% to 48% majority as more than 30 million people voted.

During the campaign stay campaigners warned that an exit vote would push up construction prices by 15% and lead to a drop in investment.

One contracting boss said: “The world has certainly changed this morning.

“The vote is a shock and markets are reeling but construction is a long term game and we’ll just have to see how this pans out.

“Some projects may get shelved in the short term but the facts remain that this country still needs more housing, infrastructure and commercial buildings and I just hope the Government keeps focused on that.”

CECA Head of External Affairs, Marie-Claude Hemming said: “The change in circumstance has unsettled the markets which, if unchecked, may discourage long term investment in UK infrastructure.

“The UK must act to secure its economy, but growth will only be delivered if supported by world-class infrastructure.

“CECA therefore calls on Ministers to now to first stabilise Government, then re-establish their commitment to the projects outlined in the National Infrastructure Plan, most notably HS2 and a third runway at Heathrow in order to maintain economic confidence following such a substantial change in the UK’s relationship with the European Union and the rest of the world.”

Mark Clancy-Jones of Knight Frank said: “The decision by UK voters to leave the European Union will cause volatility across all investment markets, and real estate will be no exception.

“Uncertainty over future economic conditions in the UK will cause some deals on hold to be shelved, andoccupiers will reconsider the amount of space they need outside of the single market.

“A fall in the value of sterling, combined with falling property values will be a buy sign for opportunistic overseas investors once the initial correction has occurred.

“This will cause a widening yield gap as real estate yields rise and bond rates fall from further Bank of England monetary loosening and will make property a favoured asset class in an unpopular investment destination.”

Via Construction Enquirer. Read the original article here.