Taylor Wimpey PLC (LSE:TW.) and Barratt Redrow PLC (LSE:BTRW) were among the biggest fallers on the FTSE 100 in afternoon trading on Tuesday, following a surprise drop in UK house prices.
Nationwide said prices slipped 0.8% in June, reversing some of May’s gains and casting fresh doubt on the strength of the housing market.
The average UK home now costs £271,619, with annual price growth slowing to 2.1% from 3.5% in May.
Robert Gardner, Nationwide’s chief economist, said the drop may reflect “weaker demand following the increase in stamp duty at the start of April”, but added he still expects activity to pick up over the summer.
Northern Ireland posted the strongest regional growth at 9.7%, despite a slowdown, while the North of England led among English regions with a 5.5% rise. East Anglia was the weakest at 1.1%.
Both Taylor Wimpey and Barratt were down 2%, Bellway PLC (LSE:BWY) was down 3%.