Election results: Housebuilders and retailers among the biggest losers from hung parliament

Next and Marks & Spencer were among the big fallers, as were builders Barratt and Taylor Wimpey

'Housebuilders are down across the board, but they're joined by restaurants, high street banks, fashion retailers and media outlets.' said Nicholas Hyett, equity analyst at Hargreaves Lansdown (Reuters)

Housebuilders and high street retailers were among the biggest share losers after the hung parliament election result, amid fears over a further hit to consumer spending.

Barratt Developments, Taylor Wimpey and Charles Church owner Persimmon were between 2 and 3 per cent lower on London's blue chip share index, and they were joined in the red by the likes of retail giants Next and Marks & Spencer, both down 1.8 per cent.

Households are already facing a big squeeze as the weak pound has sent prices of imported goods soaring and sterling's gloomy outlook under a hung parliament is expected to see consumers rein in their spending further.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “Housebuilders are down across the board, but they're joined by restaurants, high street banks, fashion retailers and media outlets.

“The implication is clear, consumers' disposable incomes are expected to be stretched, and big ticket items, like property upgrades, as well as little luxuries, like regular meals out, are expected to be among the first to go.”

​Taylor Wimpey led the FTSE 100 builders lower, falling 3 per cent, on the prospect of a property market slowdown, compounded by the latest reports pointing to falling prices and buying activity.

The Halifax house price index earlier this week showed property values increasing at the slowest annual pace for four years, at 3.3 per cent in May.

In the retail sector, Next and M&S were among the biggest fallers, down around 1.8 per cent, while supermarket Sainsbury's was 1 per cent lower and Frankie & Benny's owner The Restaurant Group was also 1 per cent weaker in the FTSE 250.

Mortgage lenders also took a hammering, with blue chips Royal Bank of Scotland and Lloyds Banking Group down 2.5 per cent and 1 per cent respectively.

Mr Hyett added that worries over the housing market have also “spread beyond the housebuilders”, with building materials suppliers Travis Perkins and Howdens Joinery joining the tumble, with falls of 4% and 3% respectively.

But there were some retail winners from the pound's latest falls, with stocks that benefit from international earnings and those with a wealthier overseas customer base enjoying gains.

This saw luxury fashion group Burberry rise 2 per cent in the top flight index, while FTSE 250 chain Ted Baker lifted more than 2 per cent.

Miners were also boosted by the falling pound, thanks to earnings made in US dollars - with silver miner Fresnillo and Randgold Resources up 3.6 per cent and 1.4 per cent respectively.

British Gas owner Centrica and SSE were also up, both 1 per cent higher, as the hung parliament looked set to put back any plans for a price cap on tariffs.

PA