Nervousness about a slowdown in the UK housing market caused shares in leading housebuilders to slide on Wednesday (Jan 10).
The FTSE 100’s biggest loser of the day was Taylor Wimpey – with shares down 4.02 per cent at the close of trading.
This was despite the house builder reassuring investors that the UK housing market remained “solid” with the Government-backed Help-to-Buy scheme helping boost demand from first-time buyers for new build properties.
Taylor Wimpey’s chief executive Pete Redfern said the company was going into 2018 with “positive momentum”.
However, shares fell significantly in early trading, before recovering some lost ground ahead of the market closing.
Shares in Persimmon and Barratt were also affected by investor jitters. Persimmon share were down 1.8 per cent and Barratt shares were down 1.4 per cent, despite the FTSE 100 as a whole ending the day in positive territory.
Last year an independent report, suggesting the Government could end Help to Buy early wiped signficant sums off the value of leading housebuilders.
In addition, there have also been concerns about the renumerations paid to those running the UK’s large housebuilding firms.
At the end of last year it was revealed the the bonus scheme at Persimmon would pay its chief executive more than £110m, as a result of meeting sales targets early.
Many of these companies have seen sales and profits grow, partly due to the Government-subsidised Help to Buy scheme.