Taylor Wimpey, Bellway and Redrow have become the latest victims of the housing slowdown, each announcing significant staff cuts.

Taylor Wimpey, the UK’s second-largest housebuilder, said it would close 13 of its 39 branches, laying off around 600 staff, mirroring the 40% staff redundancies it has made in the US since the onset of the housing slump there.

Justifying the layoffs, Peter Redfern, chief executive of Taylor Wimpey said: ‘Our experience in the US and historically in the UK is that when housing markets slow, those that react most quickly and decisively become stronger businesses, and provide the most secure and positive environment for their continuing staff.’

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. Redrow’s housing reservations are at half the level they were last year.

The firms join a string of housebuilders, including Persimmon, McCarthy & Stone and Crest Nicholson, that have had to axe jobs in the wake of the credit crunch, although the Taylor Wimpey cuts are the biggest so far. Barratt has also warned that it may be forced to axe up to 20% of its staff.

In an effort to support ailing housebuilders, the government has pledged £200m of its £8bn social housing budget to buy completed schemes and turn them into social housing. The move has been criticised, however. Miller Group chief executive Keith Miller said the sum was ‘a drop in the ocean. It misses the point – there’s no confidence in the housing market because people can’t get mortgages.’

Source

Construction Manager