Shares in UK housebuilders fell by up to 5% on Monday after Barclays downgraded key stocks, saying the country’s housing market was “broken”.
Berkeley’s share price lost 5.4% at one point, falling to the bottom of the FTSE 100 index, before recovering to trade at 3.727p, roughly 2% down, at midday.
Bellway fell 4% before recovering to 1.4% down at 3,646p, while Persimmon was down 2% before making up most of its losses to trade at 2,812p, down 0.7%.
50% rise in share prices
Shares in all three housebuilders have soared by more than 50% this year, partly driven by the government’s Help to Buy scheme, which has had an extra £10bn injection .
However, Barclays analyst Jon Bell said it was more of a 'Help to Sell' scheme that had benefited housebuilders by inflating prices.
He said the upcoming Budget would probably try to tackle the issue of helping the younger generation get a foothold on the housing ladder.