900 jobs set to go as downturn continues

Jul 2 2008 Evening Gazette

HOUSEBUILDER Taylor Wimpey, which has base in Stockton, has announced it is to close a third of its 39 offices, with the loss of 900 jobs, as it struggles to survive the property downturn.

The housebuilder said it had failed to agree a deal to raise extra funds, reported to be about £500m, through an emergency share issue.

The gloomy news came as the Royal Institute for Chartered Surveyors (RICS) said building of new homes had fallen at the fastest pace since 1995.

Britain’s biggest housebuilder said it was axing staff after suffering a “sharp” decline in reservations since April.

Net reservations for private housing during the six months to June 29 were 45% lower than previous year, the firm said.

It was now concentrating on reducing costs and cutting the prices of built homes to improve cashflow.

The firm said: “Our major markets are experiencing a significant downturn, characterised by significantly lower weekly sales rates and lower average selling prices than in recent years. We expect that the UK housing market will remain weak at least through 2008 and we do not anticipate any recovery in the short-term.”