UK house builder Persimmon suffered on the markets last week following Chancellor George Osborne request to the Bank of England to ensure that the new “Help to Buy” scheme does not cause a housing boom, and possible bust.
Share price down 4.3 per cent
Its share price fell by 4.3 per cent. Other house builders also lost value on Friday 27th Sept, including Bellway, Bovis Homes and Barratt Developments, which all fell by around three per cent.
The housing market is largely supported by government policy. While some politicians are calling for more house building, especially more affordable housing, others (namely Chancellor George Osborne) are keen to ensure that there is not a housing boom.
A housing boom results in higher property prices all round and subsequently larger mortgages for new buyers. Should the bubble burst, as it has done so in the past, home owners can find themselves with negative equity.
The FTSE closed 0.8 per cent down last week and continues to fall this week following news of an Italian political crisis.
Persimmon shareholder information:
All private shareholder enquiries should be directed to the registrar:
- Computershare Investor Services PLC
- The Pavilions
- Bridgwater Road
- BS99 6ZZ
- Telephone 0870 703 0178
To check the value of your Persimmon shares use their calculator: http://corporate.persimmonhomes.com/investor/share/calculator.aspx