Yesterday the IMF warned of severe over-pricing of property, reporting US prices had been mispriced by up to a third, with UK prices even more out of kilter.
By close of play Barratt Developments had fallen 35.5p to 659p, Taylor Wimpey were hit by 13.7p and Wolseley closed 38.5p adrift at 786.5p. Persimmon got off lightly, finishing 26.5p down.
At the other end of the market, investors reacted with cautious optimism to news that British Airways are looking to expand their transatlantic offering following the recent $8bn tie-up between Air France and US carrier Delta Airlines.
Early reports suggested BA would approach smaller airline BMI with view to a takeover, however as the day panned out increasing emphasis was placed on the strengthening of already close bonds with American Airlines. British Airways closed 6.25p up at 429.75p.
Ian McElroy Investment Manager Barclays Wealth