Developers see share prices tumble amid housing market gloom
Three of the biggest developers in the country are also among the biggest losers in the FTSE 100.
Taylor Wimpey, Hammerson and Barratt Developments each saw a 3.45 per cent, 2.93 per cent and 2.84 per cent drop respectively at the close of business yesterday (29 October).
The news coincides with the first monthly fall in house process for two years, and is being seen as a sign that the housing market is heading for an uncertain period.
Yesterday, Kier Group, the major construction company and housebuilder, announced there would be a downturn in the housing market due to the ongoing mortgage lending crisis.
The group said it had experienced a ‘notable reduction in the level of visitors’ to its houses on the back of the Northern Rock collapse.
However, despite the negative outlook, Kier’s share price rose more than 2 per cent by the end of the day’s trading.
The company also announced that it expects to meet its end-of-year targets, but the firm believes the housing market is slowing faster than expected.