Shares in FTSE 100-listed housebuilders were hammered in early morning trading as investors panicked over the outcome of the EU referendum.
Shares in Taylor Wimpey lost a third of their value, falling to 128.9p in early trading, while Persimmon fell 27.5 per cent to 1,520p and Berkeley Group fell 26.9 per cent to 430.2p. Meanwhile, Berkeley Group fell 17.8 per cent to 2,700, while Crest Nicholson fell 25.7 per cent to 434.2p.
In the run-up to the referendum, forecasts were divided between a shock to the housing market, and a "Brexit bubble" created as the falling pound made UK property more attractive to foreign buyers.
This morning think tank Cebr said it expected house price growth of 4.5 per cent this year, rather than the 4.9 per cent it had originally expected.
"The debate over what the EU referendum means for the outlook for the UK will last much longer than today," added analysts at Liberum.
"But for now we offer the conclusion that the outcome is bad for housebuilders’ shares as the combination of slowing GDP, rising longer term rates and political uncertainty is like Kryptonite for that group of shares.
"The stocks likely to perform worst are those with the highest selling prices and most London exposure, as these are where discretionary buyers are most likely to postpone decisions, notably Berkeley and Crest Nicholson. Barratt and Taylor Wimpey have much more London and South East exposure than Persimmon, which could mean that either of these make a logical pair choice in a fast moving environment."