Barratt Developments firms share price plunged 35% yesterday (Wednesday 11 June) causing fears for the housebuilding industry.

As one of Britain's largest building companies, its shares also fell 24% on Tuesday and at one point it shares were down by a massive 40%.

In a statement the company said: "The Group continues to operate within its £2.6bn of committed facilities and its banking covenants. Given anticipated completion numbers, net debt at the end of June is expected to be approximately £1.7bn in line with previous guidance.

-- Advertisement --

"Based on the review of site margins at the time of the IMS, we continue to expect the requirement for development provisions (often referred to as land write downs) in the current year will be limited. Once year-end numbers are confirmed and a detailed review of the company's 600 developments is completed with our Auditors, the company will provide a full update."

Barratt reported in its interim management update on 14 May that market conditions had "deteriorated significantly" since March.

(CD/JM)