Housebuilders take a knock as BoE ends Funding for Lending for mortgages

Shares in the housebuilding sector have taken a tumble across the board this morning on the news that the Bank of England is ending its Funding for Lending scheme for mortgage providers.

At pixel time, Barratt Homes has plummeted 9.6 per cent. Persimmon, the UK's largest home builder, is down over six per cent.

Taylor Wimpey has dropped over 6.3 per cent, whilst Bovis Homes has fallen 5.8 per cent. Bellway slid 5.6 per cent, Berkley Holdings 4.5 per cent, and Redrow is down 3.7 per cent.

Barratt has seen a continued rise in sales, accelerated by the government's Help to Buy Scheme. It reported its order book reached £1.1bn in the 19 weeks to 10 November - 47 per cent higher than a year previously. Persimmon said two weeks ago that sales of its new homes under Help to Buy exceeded 3,000, buoyed by the equity loan part of scheme.

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