Property developer Brixton has said the commercial property market has become more challenging in the wake of the credit crunch and economic slowdown.

The industrial real estate specialist reported a pre-tax loss of £236.7m ($442.1m), compared with a profit of £191.7m in the previous year.

Investment profit fell 3.9% to £22.3m, but rental income rose 13.5% to £39.4m.

Shares in UK housebuilders Persimmon, Taylor Wimpey, Bovis, Barratt and Bellway all fell by close of trade.

Persimmon shed 8.1%, Taylor Wimpey fell 9.6%, Bovis declined 6.1%, Barratt slipped 8.6% and Bellway was 4.6% lower.

Persimmon is due to announce its half-yearly results on Thursday and they will be closely watched by the market.

Brixton’s shares fell 6% or 15.25p to 232.5p on Tuesday morning.

Brixton, which rents out industrial buildings and warehouse properties, said its first-half results reflected the uncertainties of the market.

It also said that since April, sentiment had worsened and there were indications of a downturn in activities.

Brixton, whose portfolio is largely concentrated in south-east England or near Heathrow Airport, said “potential near-term distress should bring opportunities” in the company’s specialist sector.

News reported by The BBC

The Spanish housing market is close to collapse, prompting fears the country could go into recession.

The property market’s growth in recent years had given Spain’s economy a boost, but now inflation and a lack of growth are taking their toll.

Steve Kingstone reports from Madrid.

Click here to see the video on Spanish property crisis