UK's central bank, Bank of England has said that it has taken steps to control the rising housing prices in the country, a move that has affected house builder's sentiment.

Following the move by the central bank, investors panicked and withdrew as much as one billion pounds off the sector. Governor Mark Carney has indicated that the central bank will adopt mortgage of measures to control mortgage lending, including changes to its Funding for Lending scheme a strict credibility for borrowers.

The Bank of England has indicated that it is watching the UK's housing market carefully for signs of overheating as the prices of houses rise and mortgage lending increases in the country. TheHelp to Buy scheme backed by Chancellor George Osborne was launched in the previous month and the new phase, which is aimed at kick starting the market, will run until January 2017. The BOE had earlier said that the Financial Policy Committee will monitor Government's controversial Help to Buy mortgage scheme.

Persimmon, Britain's largest builder by market value, fell 7 per cent, or 44p, to 1201.5p, Barratt Developments fell 9 per cent or 33.2p to 314.5p while Berkeley Group dropped 4 per cent or 106p to 2325p.