UK: Housebuilder shares hit by property fears

The UK’s major housebuilders took another stockmarket hammering today as fears over the property market sent shareholders rushing for the exit.

Investment bank Merrill Lynch downgraded six housebuilders, hitting stocks. The fresh warning followed concerns issued by Goldman Sachs and Dresdner Kleinwort analysts earlier this week.

Barratt Developments was the biggest casualty, falling 26%. Shares have fallen by more than half since trading began on Monday morning.

Taylor Wimpey was down 21% and nursing losses of 38% so far this week. Charles Church builder Persimmon – which is set to be relegated from the FTSE 100 Index - shed 9% and has lost more than 20% since Monday.