London stocks joined those in the US and Europe in taking a dive on Monday as concerns grew over the likelihood of interest rate rises.
The FTSE 100 dropped by 2.6% to 7,297, wiping out all gains made so far this year. The FTSE 250 sank by 3.6% to close at 21,452, its lowest since last March.
In the blue chip index, housebuilders were among the sharpest sell-offs. Barratt Developments, which posted the second-steepest drop in the FTSE 100, ended the day down by almost 9% at 614.4p, a low last seen in late 2020.
Berkeley Group stood at a near-year low of 4,090p after falling by more than 6%, while Persimmon and Taylor Wimpey were also down by similar percentages.
Analysts at Jefferies downgraded Barratt, Bellway and Berkeley to “hold” today on the assumption that housebuilders will have to meet the costs of a £4bn cladding bill.
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
