Persimmon announces hundreds of job losses

PERSIMMON, the UK’s largest housebuilder is to make hundreds of staff redundant following a sharp downturn in house sales across the Midlands, North West and Yorkshire.

Following days of speculation, the Yorkshire-based firm confirmed in a statement that a 30 day consultation process with staff had started in each of the firm’s regional businesses.

A spokeswoman said that a a very “vague estimate” several hundred staff would lose their jobs, but no decision as to the final number of redundancies had been made.

Although it is thought that the majority of job losses will come from recently acquired Beazer Homes with the closure of 10 of its offices, unconfirmed reports claim that Persimmon offices in Doncaster and Edinburgh will also close.

Although most of the country is witnessing a housing market slump, Persimmon said that Yorkshire, the Midlands and the North West had seen the sharpest falls.

At it’s AGM in April Persimmon had warned that an “unprecedented tightening” in the mortgage market had led to fewer sales and increased cancellation rates.

Although the housebuilder reported that visitor levels to its sites were encouraging although sales reservation volumes remained flat. It also announced it was postponing any new site development.

The news follows jobs cuts at Taylor Wimpey, Crest Nicholson and Bellway among others as housebuilders bear the brunt of more restrictive mortgage lending by banks.

Two months ago Horsforth-based firm Consort Homes said it had called in administrators after being hit by the slowdown in the housing market.

The group, which had a £22m turnover, had 10 development sites across Yorkshire and Scotland.