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| Persimmon makes 1,100 UK job cuts | Persimmon makes 1,100 UK job cuts |
| (40 minutes later) | |
| UK housebuilder Persimmon says it has shed about 1,100 jobs since the start of the year as it tries to deal with the downturn in the housing market. | UK housebuilder Persimmon says it has shed about 1,100 jobs since the start of the year as it tries to deal with the downturn in the housing market. |
| Completions of house sales in the first six months of the year were down by 31% it said, during the "most challenging period in our recent history". | Completions of house sales in the first six months of the year were down by 31% it said, during the "most challenging period in our recent history". |
| Difficulty getting mortgages and lower confidence were blamed by the firm. | Difficulty getting mortgages and lower confidence were blamed by the firm. |
| Separately, exclusive estate agent Savills said that central London house prices had fallen 7.5% this year. | |
| The path of UK housebuilders' share prices | |
| It added that the volume of transactions in the English capital was down by 45%. | It added that the volume of transactions in the English capital was down by 45%. |
| Only the "very top end" of the market, where property values exceed £5m, was proving "relatively immune" to the downturn, Savills said. | Only the "very top end" of the market, where property values exceed £5m, was proving "relatively immune" to the downturn, Savills said. |
| The news sent Savills shares 14% lower in early Tuesday trading. | The news sent Savills shares 14% lower in early Tuesday trading. |
| Meanwhile Persimmon, which has seen its shares sink in line with other housebuilders, lost a further 6%. | Meanwhile Persimmon, which has seen its shares sink in line with other housebuilders, lost a further 6%. |
| Last month, the decline in Persimmon's share price meant that it was demoted from the FTSE 100, the share index which contains the largest UK-listed companies. | Last month, the decline in Persimmon's share price meant that it was demoted from the FTSE 100, the share index which contains the largest UK-listed companies. |
| Industry trend | Industry trend |
| Persimmon said that its job cuts would save about £65m per year, meaning it could cope "efficiently" with its downturn in business. | Persimmon said that its job cuts would save about £65m per year, meaning it could cope "efficiently" with its downturn in business. |
| Revenue was down 34% amd sales on its order book were 30% lower than at this time last year, it added. | Revenue was down 34% amd sales on its order book were 30% lower than at this time last year, it added. |
| "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 firm said. | "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 firm said. |
| Persimmon is the latest housebuilder to cut jobs, with 2,000 jobs going at rivals Taylor Wimpey and Barratt Developments. | Persimmon is the latest housebuilder to cut jobs, with 2,000 jobs going at rivals Taylor Wimpey and Barratt Developments. |
| Last week, Taylor Wimpey shares more than halved in value after the firm announced 900 job cuts and said it had failed to secure an extra £500m of funding. | Last week, Taylor Wimpey shares more than halved in value after the firm announced 900 job cuts and said it had failed to secure an extra £500m of funding. |
| And Barratt is shedding up to 1,000 jobs in another blow to the troubled UK property market. | And Barratt is shedding up to 1,000 jobs in another blow to the troubled UK property market. |
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