Housebuilder stocks and shares 'tumble'

Stocks and shares in the UK housebuilding sector have experienced their biggest fall since the start of the current economic downturn, according to reports from Merrill Lynch and Goldman Sachs.

Barratt Developments shares tumbled by more than 12 per cent today (Wednesday June 11th), meaning that the firm's share value has dropped 93 per cent this year, reports the Financial Times.

Yesterday, Alistair Stewart of Dresdner Kleinwort took the step of withdrawing his target price for Barratt stock until the developer's short-term debt concerns have been assuaged.

Mr Steward commented: "Although we would not rule out a financial partner emerging, the risks on the downside weigh against us recommending a ‘Buy’ at any price until there is more financial clarity."

There were heavy share falls at other housebuilders with Persimmon dropping 7.5 per cent to 358.5p, Taylor Wimpey tumbling 12.5p - 20 per cent - and Bellway falling 29p - nearly 6 per cent.

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