Countrywide shares are crashing after the government made a huge change to the rental market

LONDON - Shares in Britain's largest estate agency group Countrywide are crashing on Thursday morning, after the government announced huge changes to the country's rental market.

As of 8.30 a.m. GMT (3.30 a.m. ET), Countrywide's stock price cratered by nearly 14%, after the group also released a statement confirming that transaction volumes are likely to fall this year and in 2017.

Here is the chart:

Investing.com

On Wednesday, Chancellor Philip Hammond announced in the Autumn Statement that tenancy fees charged by letting agents to renters will be banned. The costs will instead be shifted to landlords. Investors are worried that this could lead to less property going through agencies and instead renting out privately because of the large amount of upfront fees landlords would have to pay.

The announcement sent other property shares crashing, such as London's largest estate agency Foxtons. Its stock price fell down as much as 10% at one point. Foxtons made close to 50% of its revenue - £33.5 million - from letting fees in the first half of the year. The estate agent said in its half-year results that its strong lettings business provides "significant downside protection" to the Brexit-driven slowdown in the London property markets.

On Thursday, it is Countrywide's turn.