UK property and banking stocks have plummeted in share trading today following the collapse of US investment bank Lehman Brothers.
HBOS, the biggest mortgage lender in the UK, suffered the largest fall of the UK banks, tumbling 30%. RBS has so far fallen 14% and Barclays 13%.
The stocks were hit following investor concerns that the Lehman crisis may mean more writedowns and higher financing costs for the banks.
HBOS is more reliant than other banks on borrowing from the wholesale markets for its funding.
More widely, the FTSE All Share has dropped almost 5%, the biggest one day fall since January.
UK listed property stocks have also been hit hard, with Savills dropping almost 10%, British Land 7% and Minerva 8%. Land Securities is down 4%.
