Europe could wipe 10pc off house prices

Pete Redfern, who heads up the UK’s second biggest home builder, said that a further escalation of the region’s debt problems threatens a UK banking crisis.

“The worse case scenario … is that a problem in Europe causes a UK banking problem,” he said. “While the underlying housing market is strong, if there was a withdrawal of banking finance obviously that would be negative.”

In this situation, 10pc could be wiped off house prices, he said. Taylor Wimpey is running its balance sheet so that it could weather this possible storm, he said, despite putting the probability of this scenario as low.

“Even if the chances are 1pc, we’ve got to protect the business from that 1pc chance,” Mr Redfern said.

Source: Telegraph.co.uk

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