You are here: Home - News -

Housebuilder shares tumble after top bosses offload own shares

by: John Fitzsimons
  • 13/09/2017
  • 0
Housebuilder shares tumble after top bosses offload own shares
Shares in housebuilding firms have tumbled, after a succession of leading figures at major housebuilders opted to sell some of their shareholdings.

This week Steve Morgan, founder of Redrow, sold shares worth 7% of the firm for £153m. It followed the decision of a host of senior directors at Berkeley Group to sell shares worth a total of £45m at the end of last week, the largest amount sold by directors or their families in more than a decade according to Olivetree Financial.

Earlier this week directors of Irish builder Cairn Homes also cashed in a substantial amount of shares, prompting analysts to question whether this represents sector leaders suggesting the market has peaked.

The sales have led to significant share price falls in housebuilders. Redrow for example saw its share price drop from 633.50 to just 577.50 yesterday, and it has only slightly improved since then. Berkeley Group’s share price has dropped from a high of 3,707 last week to as low as 3,501 this week.

Morgan recently announced he intended to take a step back into a non-executive role at the builder, adding: “It is my intention to continue to focus with the board on the strategic development of the business and I will retain my keen involvement with the product and key important projects.”

Jeffries analysts issues a note in response titled ‘Gurus calling the top?’, which suggested the sales were somewhat surprising given the current housing shortage and government backing for the housebuilding sector in the form of the Help to Buy scheme.

It said: “When Tony Pidgley and Steve Morgan sell shares in the companies they founded, investors take notice and ask if the silverback alpha males in the sector are calling the top of the market.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Masthaven launches light development product in range revamp

Masthaven has launched a new light development product as part of a number of changes to its short-term lending range.