Tuesday July 8, 08:30 AM
Housebuilder Sheds 1,100 Jobs
By Sky News
Housebuilder Persimmon says it has cut around 1,100 jobs this year as it battles against plunging home sales and property values. The move follows similar announcements last week by rival building firms Barratt Developments and Taylor Wimpey,
which are axing nearly 2,000 jobs between them.
Persimmon said its sales were down 31% in the past six months as it confirmed the job cuts as part of a drive to save money.
The York-based group said the past six months had "undoubtedly been the most challenging period" in its recent history.
Average selling prices had fallen to £181,500 in the first half of the year from £189,255 in the same period last year, it added.
The firm, which is one of the UK's biggest housebuilders, said half-year sales revenues were down by more than a third at £1bn.
Housebuilders have been badly hard by the credit crunch as the mortgage drought means homebuyers have been unable to secure the finance they need.
And property price falls have put people off buying a home.
Persimmon said conditions had continued to worsen since its last grim update in late April, with falling consumer confidence affecting all areas of the housing market.
Private house sales have been the worst affected sector, with legal completions down 39% in the first six months against 2007 as weekly visitor levels dive by 20%.
Persimmon has seen a big fall in its share price and last month it was relegated from the FTSE 100 Index of Britain's leading companies.
The group trades as Charles Church, Persimmon Homes and Westbury Partnerships.
Taylor Wimpey recently announced 900 job cuts, while up to 1,000 posts are set to go at Barratt Developments.
Click here for more breaking stories from Sky News
|
Send Article by Email
