Barratt reports slump in new home orders as mortgage rates rise

Shares slide after developer warns of less certain' outlook as housing market hit by jump in borrowing costs

Barratt Developments has reported a slump in reservations of new homes in recent weeks, as the housing market is hit by economic uncertainty and rising mortgage rates.

Shares in Britain's largest housebuilder tumbled by as much as 8% in early trading on Wednesday, the biggest faller on the FTSE 100, and dragged down the share prices of its housebuilding rivals after it warned of a less certain" outlook.