Barratt shares tumble 14%

Shares in Barratt dropped another 14% yesterday as fears over the health of the housebuilding sector continue.

The fall - the biggest on the FTSE 250 yesterday - comes amid speculation that many housebuilders will be forced to reconsider the values of their assets in advance of their half-year results, resulting in big write-downs.

The Guardian reported that much of the focus has been on Barratt because it is reported to have debts of £1.7bn, which some analysts think brings it close to breaching banking covenants, even before a write-down.

Meanwhile chief executive Mark Clare is thought to have lost £575,000 personally since December when he bought shares in the company at 441p. They are now worth just 121p.