The Independent Commission on Banking recommended higher capitalisation rates for banks
Housebuilders’ share prices have tumbled since the release of findings by the Independent Commission on Banking, which has recommended higher capitalisation rates for banks that could spell more expensive mortgages for consumers.
The news comes as analysts fear there could be no traditional pick up in home sales in spring, and further reports of falling house prices from the latest survey by the RICS.
The report, out on 11 April, said that banks will have to keep more capital in order to better weather future financial crises, but this could push up mortgage rates for customers.
Barratt shares fell 6% in the two days after the report, while Persimmon fell by 4% and Taylor Wimpey 5.5%.
The prices have rallied slightly since, but all have declined since the beginning of the month as fears grow that there will be no traditional spring pick-up in sales.
“It’s becoming clear that there isn’t a step up in the spring selling season,” said Robin Hardy, an analyst at Peel Hunt.
This comes after a survey by the RICS found that 23% more surveyors thought March house prices were dropping than rising.