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Banks and building societies pull out mortgage deals

24/04/2008

The UK’s homebuilders had been told to slow down on constructing more homes after Persimmon suggested that the housing market had started to grow downwards.

Persimmon is known to be the UK's biggest building organisation, they confimed that they witnessed a drop in demand throughout April, when all banks and building societies started to pull out mortgage deals.

The firm has decided not to start creating new building sites until the market situation improves. Notification to the government was made to increase the threshold on stamp duty, simply to encourage first-time buyers.

A member from the Persimmon group commented: "At the same time the backdrop of extensively reported concerns about the global credit crisis have continued to undermine consumer confidence."

After inspecting the Stock’s & Shares market, Persimmon plunged by 7.5 per cent in early trading, this causing a loss of approximatley 51.5p to 598.5p. Many housebuilders shared in situations, with Barratt down by 6.8 per cent, Redrow on a loss of 5.8 per cent and Taylor Woodrow dropping to nearly 6 per cent.


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