Bellway announces job cuts and division closures

Bellway is contemplating a series of job cuts and the closure of two division.

The move has been driven by the challenges in the UK’s housing market caused by the Bank of England’s ongoing and significant interest rate increases.

Interest rates reached 5.25% last week, putting strain on the housing sector.

According to a report by Sky News, there is a possibility of around 90 job losses within the 3,000-member workforce, as the London Partnerships and South Midlands divisions are likely to be shut down.

Bellway’s latest statistics paint a concerning picture: their reservation rate dropped by almost 25% during the four months leading up to June, and the value of their order book decreased from £2.4 billion to £1.7 billion.

In a statement to Sky News, Bellway said: “In response to current market conditions which have caused a slowdown in the sales market and a reduced output for house building, we have today announced proposals to make some structural changes across our business.

“This includes the potential closure of two of our operating divisions, with sites being transferred to other divisions, a reduction in capacity in a third division and a limited number of role reductions across the business.

“A process of consulting with those potentially impacted has begun today.”