FTSE 100 House Builder Relegated After Brexit

House builder Berkeley is to become the FTSE 100's first Brexit relegation victim after its shares slumped in the wake of the EU referendum.

The group - which backed a Remain vote - is in line to slip out of the top-flight share index after losing £900m in value since the vote on 23 June.

House builders have seen big share falls in the wake of the referendum as investors worried about the result dealing a blow to the economy and the housing market.

Berkeley has fallen by 20% with Persimmon (Frankfurt: 882058 - news) off by 10% and Taylor Wimpey (LSE: TW.L - news) down 15%.

The FTSE 100 relegation announcement comes as Bank of England figures showed that mortgage approvals for house purchases fell in July to their lowest level in 18 months.

Berkeley had warned before the EU vote that sales were down by 20% in the first five months of the year as the poll approached.

Chairman Tony Pidgley said that the outcome of the referendum would have a significant impact on the sector.

He cited the importance of "labour mobility, cultural diversity and a constant influx of talent and investment from around the world".

Now Berkeley's fall in market value in the wake of the vote means it is in line to fall out of the index of the UK's 100 most valuable listed companies, a year after being promoted.

It will go into the second-string FTSE 250 Index.

Due to replace it in the FTSE 100 Index is Russian gold and silver miner Polymetal.