House builders have had to slash workforce

A number of major house builders in the UK have been forced to cut their workforce dramatically, as the misery in the housing market and low sales performance continue to take their toll in the housing sector. With many people unable or unwilling to purchase homes, some house builders have had to cut their workforce by around 40%.

Redrow Homes is one of the building firms that has had to slash its workforce due to lack of activity in the market. One official from the firm said: ‘It remains difficult to assess how long the sharp reduction in sales activity will continue or the extent to which house prices will be affected. However, we expect the difficult markets we are confronting may persist for some time.’

He continued: ‘The 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.’

Another housing firm that has been affected is Bovis Homes, and an official from this firm said: ‘The backdrop to the market is pretty awful. The volumes have been affected by that backdrop, which has largely been caused by the turmoil in the financial markets, and the inability to get a mortgage has been a massive constraint on the consumer.’