Home salesfall by third

Jul 8 2008 Evening Gazette

HOUSEBUILDER Persimmon showed the impact of a worsening UK economy today as its sales fell by more than a third in the past six months and confirmed 1,100 jobs had been cut so far this year.

The York-based group, which trades as Charles Church, Persimmon Homes and Westbury Partnerships, 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.

Persimmon, one of the UK’s biggest housebuilders which has sites in Hartlepool and Redcar , said half-year sales revenues were down by more than a third at £1bn.

The 1,100 job cuts come as part of an overhaul to save money amid the housing market woes.

Persimmon said: “We have reappraised our business in the light of the significant change in trading conditions and have taken action to address the new challenges presented.

“We now have a lower level of overheads and structure appropriate for the current levels of business, whilst at the same time remaining well placed to achieve an increase in output whenever mortgage availability and the overall market improves.”

The group’s job losses add to nearly 2,000 job cuts announced last week by rival firms Taylor Wimpey and Barratt Developments.