Barratt, TayWimp and Persimmon's shares rally

Share prices in the major housebuilders have risen sharply in trading today, with Barratt developments up by around 30%.

Taylor Wimpey was up more than 15%, while Persimmon's share price has also risen by about 7%.

Barratt's share price had been in freefall, dropping from a high of 1075p last summer to under 40p earlier this week. But today it climbed from to a high of 51p, up 11p on yesterday's close.

The rise sparked rumours among investors that Barratt's trading statement, expected tomorrow, will contain positive news about its attempts to strike a lifeline funding deal with its banks, as widely reported in the media.

The news offers a glimmer of light in an otherwise gloomy week in which five major housebuilders - Taylor Wimpey, Barratt, Persimmon, Bovis and Redrow - have revealed a total of 5,000 redundancies, amid heavy sales falls thanks to the credit crunch.