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| House builder Barratt cuts jobs | House builder Barratt cuts jobs |
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| UK house builder Barratt Developments has confirmed it is cutting more than a thousand jobs due to the housing slump and the squeeze on mortgage lending. | UK house builder Barratt Developments has confirmed it is cutting more than a thousand jobs due to the housing slump and the squeeze on mortgage lending. |
| Barratt, which employs 6,700 staff, said it was cutting 1,200 jobs by closing two divisions and merging other parts of its business. | Barratt, which employs 6,700 staff, said it was cutting 1,200 jobs by closing two divisions and merging other parts of its business. |
| The company also said it had reached a deal with its lenders to give it extra breathing space to pay back its debt. | The company also said it had reached a deal with its lenders to give it extra breathing space to pay back its debt. |
| It added it expected housing production to hit a 50-year low in 2008. | It added it expected housing production to hit a 50-year low in 2008. |
| Barratt said a £400m debt facility, which was due to be paid next April, has been extended to July 2011. | Barratt said a £400m debt facility, which was due to be paid next April, has been extended to July 2011. |
| 'Challenging period' FROM THE TODAY PROGRAMME More from Today programme | 'Challenging period' FROM THE TODAY PROGRAMME More from Today programme |
| It has also agreed a new deal with its banks to reduce the chance of breaching it debt covenants. | It has also agreed a new deal with its banks to reduce the chance of breaching it debt covenants. |
| Chief executive Mark Clare said: "We have now substantially improve our competitive position and are better placed to deal with what will be a very challenging period ahead." | Chief executive Mark Clare said: "We have now substantially improve our competitive position and are better placed to deal with what will be a very challenging period ahead." |
| The firm has been hit by a sharp drop in the number of available mortgages for consumers and the wider housing downturn. | The firm has been hit by a sharp drop in the number of available mortgages for consumers and the wider housing downturn. |
| Barratt said total sales completions fell by 13.8% in the year to June, compared with 2007. | Barratt said total sales completions fell by 13.8% in the year to June, compared with 2007. |
| Completions for private homes fell 18.4%. | Completions for private homes fell 18.4%. |
| More than a fifth of completions were for social housing. | More than a fifth of completions were for social housing. |
| Average sales rates to private buyers fell 43% year-on-year in the past six months. | Average sales rates to private buyers fell 43% year-on-year in the past six months. |
| Cancellation rates for its homes jumped 33.6% over the past year, reflecting the "acute shortage of mortgage finance", Barratt said. | Cancellation rates for its homes jumped 33.6% over the past year, reflecting the "acute shortage of mortgage finance", Barratt said. |
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