Housebuilders share prices slump

Persimmon, Bovis and Redrow saw their share prices slump in the face of a shock house price fall that also caused the pound to tumble more than two cents yesterday.

The housebuilders had already seen their share prices fall 50% in the past 12 months, when they fell yet again after Halifax revealed a 2.5% fall in its housing index for March.

The sharp fall in house prices led to a call by the Confederation of British Industry, property companies, estate agents and lenders for an easing in the cost of money, reported the Daily Telegraph.