Shares in housebuilders fell sharply in early trading this morning after the government released data showing inflation remained stubbornly high in April, increasing the likelihood of the Bank of England raising interest rates further than previously expected.

Shares in both Taylor Wimpey and Persimmon fell by as much as 5% at points, with the UK’s largest builder, Barratt, dropping by 4.3% on speculation the Bank will now be forced to raise base rates to well above 5%, putting additional pressure on buyers of new build homes.

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