The UK’s largest listed housebuilders today saw £1.6bn wiped from their value as stocks dived following government plans for a new residential developer levy.
Housing secretary Robert Jenrick said a new levy on residential profits would generate £2bn to pay for high-rise cladding remediation work. It will come into force in 2022.
Jenrick also announced a new developer levy for high-rise builds to be paid at planning. He said the new mechanisms would “make the industry pay for the faults of the past”.
Bellway was the worst hit, falling 6.1% to 2,930p, with £250m scrubbed from its market capitalisation.
It was followed by Crest Nicholson, down 5.2% to 315p, Vistry down 5% to 878p and Countryside down 5% to 450.8p.
Every residential developer in the FTSE 350 saw declines, with Irish housebuilder Cairn Homes recording the lowest drop, falling 1.7% to 83.7p.
Overall, the markets saw less dramatic declines, with the FTSE 100 down 0.1% at 6,524 and the FTSE 250 dropping 0.6% to 20,996.
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