Share prices for some of the UK’s biggest housing developers have slumped amid fears the sector’s future is looking uncertain.
The BBC reports Barratt Developments dropped 35 per cent, while Taylor Wimpey is down by a quarter and Redrow was down 22 per cent after bankers gave bleak outlooks. Some developers have been impacted by the slowdown in the housing market as sales fall and some buyers pull out at the last minute.
Quoted by the BBC, a Merrill Lynch research note said:
“Uncertainty has been and remains both a pervasive as well as a malign force overshadowing sentiment toward the UK house builders.
“In particular, trends in unemployment remain potentially of the greatest concern. We continue to take the view that this is the single most important macro variable to watch.”
According to the BBC UK is up by 38,000 to 1.64 million from February to April. Merill Lynch is a financial management and advice company which has offices in 40 countries and client assets totalling billions of pounds.
As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes.
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