Shares plummet at Barratt as mortgage crisis deepens

Shares in Leicestershire housebuilder Barratt Developments have taken a dramatic hit amidst increasing volatility in the UK mortgage market.

With the market in turmoil following last week’s mini-budget, Barratt saw its share price slump to around 323p at the close of trading yesterday (29 September) – down by around 12% on the opening price.

The Coalville firm’s shares have plummeted by more than 20% in the last seven days, with the news coming after it was revealed that 40% of mortgage deals have been withdrawn following the Chancellor’s promise to cut taxes whilst increasing borrowing.

Earlier this month Barratt posted revenues of £5.3bn and record profits of just over £1bn, making a huge surplus during a year in which bosses said the company had made “fantastic progress.”

This morning (30 September), the housebuilder told the London Stock Exchange it had purchased 1,260,000 shares from Credit Suisse International as part of a £200m share buyback programme.

It revealed that the lowest price it paid for a share was 317.8p.