British housebuilders fall on signs of market intervention
Shares in Britain's housebuilders and property developers fell on Friday after the government and the Bank of England signalled they were ready to intervene to cool the country's surging house market. British house prices have risen by 11 percent over the last year, benefiting house builders but leading to concerns that a bubble could develop. Finance minister George Osborne said late on Thursday he would now give the Bank of England stronger powers to curb mortgage lending, while the Bank's Governor Mark Carney also noted that interest rates could rise sooner than expected, in his strongest warning yet. Shares in the country's biggest housebuilders including Barratt Developments (LSE: BDEV.L - news) and Persimmon (Frankfurt: OHP.F - news) , fell over 4 percent, dragging down the FTSE 100 blue-chip index, while Bovis Homes Group, Taylor Wimpey (LSE: TW.L - news) , Bellway and Berkeley Group, were down between 3 and 4 percent.