Thu 29 May 2008
Property shares tumble after house price fall predictions
The markets are continuing to punish housebuilders for poor performance, as share prices plummeted following Nationwide’s stark revelations earlier today of a 4.4% annual drop in house prices across the UK.Taylor Wimpey was the biggest loser in today’s market bloodbath, with share prices dropping by 7% to 86.75p; the firm’s shares have lost 81% of their value since this time last year. Similarly, Barratt’s share price fell 2.37% to 195.75p, while Persimmon’s shares dropped by 5.06% to 487.5p.
A 2.8% drop in May has prompted house prices to fall 4.4% over the last year to an average of £173,683, Nationwide has reported. “A further fall in house prices in May was not unexpected,” Fionnuala Earley, Nationwide’s chief economist told the press. “For most of those not wishing to move house or borrow money secured on it, the fall in value of their home is likely to be of limited concern in the short-term.”
Persimmon is the last remaining housebuilder in the FTSE 100, but is set to lose its place next month in a quarterly reshuffle. Earlier today, north-west builder David McLean announced that it has made 30 members of staff, 10% of its total workforce, redundant after revealing pre-tax losses of ÂŁ3.9 million in a statement.
Posted by Marc Da-Silva
in David McLean, Fionnuala Earley, Nationwide, News, Taylor Wimpey on Thu 29 May 2008
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