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 Some of the UK's largest house-building companies were left reeling yesterday (June 10th) after their share prices dramatically plummeted to new depths.
Barratt Homes saw its price slashed by nearly 25 per cent on the London FTSE exchange, falling from 119.25 pence to a record low of 91.5 pence.
The figures complete a remarkable turnaround for the company in the midst of the current housing crisis, as in early April its shares were trading at 443 pence.
Indeed, just a year ago Barratt was valued at £4 billion with a share price of 1,110 pence, compared to its current valuation of £400 million.
Investors are now concerned that debt repayments - such as those acquired from last year's £2.2 billion purchase of Wilson Bowden - will not be met, although the company has denied speculation of a rights issue.
In addition, the trend appears to be spreading across the industry, with the largest British-based house-builder, Taylor Wimpey, also experiencing falls of 14 per cent yesterday.
Meanwhile Persimmon opened at 419 pence and closed at 387.5 following considerable trading activity, representing a 9.6 per cent decrease.
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