Bovis Homes and Redrow have become the latest UK housebuilders to announce a sweeping reduction in their workforces.
Bovis Homes and Redrow have become the latest UK housebuilders to announce a sweeping reduction in their workforces.
Both firms said staff numbers would be cut by 40% compared with the beginning of the year.
Staff numbers will be cut by 40% compared with the beginning of the year at both firms.
They blamed the downturn in the housing market on the reduction of affordable mortgages because of the credit crisis.
A credit crunch and drop in the number of affordable mortgages are to blame for the market problems, they said.
Rival builder Persimmon said on Tuesday it had shed about 2,000 jobs since the start of the year, including 1,100 office jobs and 900 site-based jobs.
Bovis said it would shed about 400 office and site-based jobs, while 850 Redrow jobs will go as part of broad cost-cutting measures.
As part of its cost-saving drive, Bovis said it was closing one of its offices and amalgamating a number of key functions of its northern region with its central region.
The whole property industry is reeling from low homebuyer confidence.
Redrow said it would close two of its 10 offices.
Persimmon, Taylor Wimpey and Barratt Developments have all announced job cuts and warned on the outloook for the housing market for 2008.
Both companies were pessimistic on the short-term outlook for the property market.
'Worst for years'
Bovis said the market for selling homes was the "worst that the group has seen for years", while Redrow called the sharp decline "unprecedented".
Sales completions at Bovis for the six months to the end of June were down 32%.
Of the homes that were completed, 27% was social housing, rather than private homes, more than double the amount in the same period last year.
Bovis said it would continue to seek opportunities in social housing as it expects private home sales to remain low for the rest of 2008.
As part of its cost-saving drive, Bovis said it was closing one of its offices and merging a number of key functions of its northern region with its central region.
It will also cut its interim dividend to 5 pence per share. The company said that it had expected to pay shareholders a dividend of 20p per share.
Redrow is also making moves to manage its cost base, closing two of its 10 offices.
It is carrying out a review of the value of inventory and land not in development. It warned that this review may lead to it cutting the value of its holdings.
Both Redrow and Bovis were pessimistic about the short-term outlook for the property market.
Do you work for either firm? Will you be affected by the job cuts? Send your comments using the post form below, or text 61124:
Do you work for either firm? Will you be affected by the job cuts? Send your comments using the post form below, or text 61124:
