Bellway consulting on proposals to chop 90 jobs as housebuilder hit by droop in demand

One of Britain’s greatest housebuilders is planning widespread redundancies and the closure of two regional divisions because it battles a droop in demand from new consumers.

Bellway is consulting on the proposals, which might contain the closure of its London partnerships and South Midlands divisions.

The transfer may see 90 staff from the corporate’s 3,000-strong workforce lose their jobs.

“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,” the corporate stated in an announcement.

“This contains the potential closure of two of our working divisions, with websites being transferred to different divisions, a discount in capability in a 3rd division and a restricted variety of function reductions throughout the enterprise.

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

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It is the latest sign of a slump in the housebuilding sector, which is grappling with high interest rates and a value of residing squeeze that’s dampening demand.

The finish of the federal government’s Help to Buy scheme in England can be weighing on the sector.

In an organization replace made in June, Bellway revealed its reservation fee for the 4 months to June fell by nearly 1 / 4 to 190 properties, in comparison with the identical interval final 12 months.

The firm stated the worth of its order guide had fallen from £2.4bn to £1.7bn.

It got here two months after Taylor Wimpey introduced that it was planning to chop jobs to be able to discover financial savings of £20m a 12 months.

Meanwhile, Barratt introduced in July that it could build 20% fewer homes in 2024, whereas Berkeley stated its annual gross sales had been anticipated to fall by a fifth.