- Government wants £4bn remedy from industry
- Higher individual provisions and taxes are on the table
In recent months, housebuilder shares have looked increasingly unmoored from the broader equity market. Persimmon (PSN), the largest listed developer in the FTSE 100, started the year trading on 10 times’ forecast earnings for 2022, sitting on a "robust dividend" with an 8 per cent yield.
But in recent days, hopes that growing cash piles will be reserved for special distributions have been clouded by a growing standoff with the UK government. Today, shares in housebuilders dropped sharply after clear signs ministers will force the sector to pay £4bn to resolve the cladding crisis.