Nine hundred and fifty jobs are to be axed by UK house builders Bovis Homes and Redrow following a dramatic decrease in business as the credit crunch sinks it’s teeth into the property market.
Redrow, one of the Uk’s big four housebuilders has announced that it will be cutting 40% of it’s workforce, a figure of 550 in total. They will be closing two offices and are expected to announce significant ‘write down values’ of it’s land bank in it’s annual results in September.
Bovis Homes are also set to announce the laying off of around 40% of its workforce, around 400 jobs in their case. They have also announced a cut in their dividend from 20p to 5p and warned that it’s first half profit will be hit by a sharp reduction in sales.
Bovis are expecting a gross margin of 26% on the first half year of sales, down by 6% on the previous years figures. The company will also be closing and amalgamating offices in the UK to streamline it’s operation, at a one off cost of around £2million.
Redrow management said: “The UK housing market continues to be severely affected by the credit squeeze. Homebuyer confidence is now also being influenced by concerns about the future for house prices and interest rates. As a result the market for both new and second hand homes has declined rapidly to transaction levels not experienced for very many years with the price of homes now declining.”
Redrow Chief executive Neil Fitzsimmons said consumers’ lack of confidence is now having a bigger impact on sales than difficulties in getting a mortgage.
These cuts bring the total to 5,500 job losses in the housebuilding sector this year.
0 comments so far
There are no comments for this post yet. Why not be the first by filling out the form below.