Housing slump claims another three

Building magazine and Contract Journal (CJ) reported Taylor Wimpey's decision to close 13 regional offices and make around 600 staff redundant, the biggest cut in the industry so far, which reflects the 40% staff redundancies it has made in the US since the onset of the housing slump there.

Newcastle-based Bellway Homes made 370 employees redundant, or 15% of its 2,476-strong workforce, while Redrow also cut its workforce by 15% and put a freeze on recruitment.

Meanwhile, financial problems at Barratt have prompted chief executive Mark Clare to warn that it will be putting the squeeze on subcontractors for at least the next year, reported Construction News.

Admitting that the market had deteriorated in the last six weeks he said: 'We are not planning on a recovery of the market this calendar year. In the next financial year we will continue to tough it out...the number of subcontractors we use will reduce quite dramatically because of the slow work in progress.'

In related news, Robert Napier, chairman of English Partnerships has warned housebuilders that the housing slump is no excuse for failing to deliver energy efficient homes. 'We have experienced housing cycles before and today's problems are neither a reason, nor an excuse to sidestep the drive for quality and a low carbon future,' he said, adding that the government shown no signs of weakening its resolve to have all new housing meet zero carbon standards by 2016.